Stratic Energy Corporation, a Canada-based oil and gas company, has agreed to sell its Italian business to Enel Trade SpA, a subsidiary of Italy-based electricity company Enel SpA.

Stratic Energy will receive a total cash consideration of EUR34.3 million and the assumption of existing obligations relating to the assets. Stratic is entitled to receive a further payment of EUR6.6 million provided the commencement of first production takes place before the end of 2011, reducing pro-rata by month, with no payment due if production commences after the end of 2012. The transaction is expected to complete in the first quarter of 2010.

The transaction involves Stratic's entire portfolio of assets in Italy, including its interest in the Longanesi gas field and other exploration acreage in the country.

Lazard & Co., Limited is acting as financial advisor to Stratic Energy in the transaction.

Deal Value (US$ Million) 60.7
Deal Type                Acquisition
Sub-Category             Asset Purchase
Deal Status              Announced: 2009-11-05

Deal Participants

Target (Company)   Stratic Energy Corporation - Business - Italy
Acquirer (Company) Enel Trade SpA
Vendor (Company)   Stratic Energy Corporation

Deal Rationale

The sale of Italian business will allow Stratic Energy to reduce net debt further and strengthen its balance sheet, and provide resources for future investment.

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