Siguler Guff announces merger between Canadian oil and gas companies

Houston-based multi-strategy private markets investment firm Siguler Guff announced Canadian privately owned oil and gas exploration and production companies Persist and Dienerian have reached a definitive agreement in an all-stock transaction, according to a Sept. 6 news release. 

"We are very excited to partner with Persist in its next phase of growth,” PR Panigrahi, Siguler Guff’s managing director and head of energy investments, said in the release. “This merger and consequent investment demonstrate Siguler Guff's ongoing commitment to providing flexible capital solutions to the exploration & production sector.”

The transaction will boost Persist’s position as an up-and-coming player in the Southern Alberta Mannville Formation, which consists of a pro forma acreage footprint of more than 220,000 net acres that now has approximately 60,000 net acres of liquid-rich Montney land, in addition to production of around 4,250 barrels of oil equivalent per day, the release reported.

Key highlights of the agreement include an increase in size and scale, diversifying a portfolio of high-return inventory, cost synergies, a strong balance sheet, tax pools and asset retirement obligations, according to the release.

The agreement called for Siguler Guff, Dienerian’s largest investor, to make a preferred equity commitment of about $40 million Canadian in the pro forma combined company,  the release said.

Persist’s leadership will helm the combined company with Siguler Guff occupying half the seats on the board of directors, according to the release. Persist head Mass Geremia said in the release the timing of the transaction was ideal.

"Our new partnership with Siguler Guff could not have come at a better time,” Geremia said in the release. “The addition of Dienerian's assets and new preferred equity commitment allows Persist to accelerate its development plans and substantially increase shareholder value over the next two years.”

Siguler Guff is based in Houston, Texas, and has more than 60 years of experience "in energy production, services, technology and investing," according to the release.

"Leveraging artificial intelligence and machine learning from the vast amount of data from its strategic partner, the Siguler Guff energy team invests in special situations, drilling joint ventures and emerging technologies with direct exposure to hydrocarbons which can generate strong risk-adjusted returns throughout commodity price cycles," the release said.