Yanchang Petroleum International Limited completes acquisition of Novus Energy Inc.

Date Closed: 1/20/2014

Value: C$320 million

On January 20, 2014, Yanchang Petroleum International Limited (Yanchang), through its indirect wholly-owned subsidiary, completed the acquisition of Novus Energy Inc. (Novus), a Calgary-based oil and natural gas company with assets in western Canada.

Yanchang is a Hong Kong listed public company principally engaged in the exploration, exploitation and operation of oil and gas fields and refined oil wholesale and retail businesses. Shaanxi Yanchang Petroleum (Group) Co. Limited (Yanchang Petroleum Group), the fourth largest oil producer in China with more than 100 years of history, is the largest shareholder of Yanchang and also controls the board of Yanchang. Yanchang Petroleum Group is principally engaged in oil and gas exploration, exploitation, processing, pipeline transportation and sales of oil and gas; chemical engineering of oil, gas and coal; machinery manufacturing; project construction; and oil and gas research and development.

The acquisition was carried out by way of a statutory plan of arrangement pursuant to which Yanchang indirectly acquired all of the issued and outstanding common shares of Novus for $1.18 in cash per share. The total transaction was valued at approximately $320 million, including $100 million of assumed debt.

Yanchang was represented by BLG, with a team that included Kent Kufeldt, Lily Wang and Robyn Bourgeois, Peter Bryan, Colin MacDonald and Jean-Philippe Couture.