Cancen Closes Acquisition of Kinsella Crude Oil Terminal and Blending Facility from Astra Energy Canada Inc.
EDMONTON, ALBERTA--(Sept. 11, 2012) -
Cancen Oil Canada Inc. ("Cancen" or the "Corporation") (TSX VENTURE:COI) is pleased to announce that it has closed its previously announced acquisition of the Kinsella Crude Oil Terminal and Blending Facility (the "Facility") from Astra Energy Canada Inc. ("Astra"). The total purchase price was $5.0 million consisting of $4.5 million cash and a $0.5 million promissory note (the "Note") bearing interest at prime plus 2% secured against the Facility and due on October 31, 2012.
The Facility is an operating clean oil pipeline terminal and blending facility strategically located north of Hardisty, Alberta and is connected to the Inter Pipeline Bow River pipeline system in Beaver County, Alberta. The Facility consists of surface facilities and equipment required to facilitate custom blending and terminalling of 500 m3 of various sweet, sour and heavy clean crude oil per day. The Facility has been in operation since 2004 and provides services to Western Canadian producers. The Transaction was an "Arm's Length Transaction", as such term is defined in the policies of the TSX Venture Exchange Inc.