Chamaelo, Tropic Networks and Tournament Energy merge

Date Closed: 1/05/2006

Value: C$93.75 million 

On January 5, 2006, Chamaelo Exploration Ltd., Tropic Networks Inc. and Tournament Energy Ltd. completed a plan of arrangement whereby the three entities merged to form an oil and gas company with a market capitalization of approximately $311 million and its shares listed on the Toronto Stock Exchange under the name Chamaelo Exploration Ltd. In connection with the arrangement, bought deal equity financings for aggregate gross proceeds of $93,750,000 were completed with a syndicate of underwriters co-led by Orion Securities Inc. and Sprott Securities Inc. and including GMP Securities Ltd., Tristone Capital Inc., Haywood Securities Inc. and National Bank Financial Inc. (collectively, the underwriters). Bank financing was also provided by National Bank of Canada in the amount of $60 million.

The underwriters were represented by Scott Wilson, Gil Malfair and Shane Stevenson of BLG.