What To Do With Endev

Article Excerpt

ENDEV ENERGY INC. $1.41 (Toronto symbol ENE; SI Rating: Speculative) (1-888- 739-4623; www.endevenergy.com; Shares outstanding: 88.7 million; Market cap: $125.0 million) jumped recently after receiving a buyout offer from Penn West Energy Trust, $35, symbol PWT.UN on Toronto. Endev shareholders will receive 0.041 of a Penn West unit for each Endev share held, which is equivalent to $1.44 per Endev share at the current price of Penn West shares. Penn West expects to issue 3.9 million trust units in the deal and assume $43.9 million of Endev debt, for a total value of about $170 million. Endev explores for and develops oil and natural gas in central Alberta. Production is weighted 22% toward crude oil and liquids and 78% natural gas. Endev’s primary production area at Majorville in southeastern Alberta is near existing Penn West operations. The all-stock deal will add 3,500 barrels of oil equivalent production per day to Penn West’s production, plus about 100,000 acres of undeveloped land. Penn West already…