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“From where they were sitting on Friday, when the stock was 16 or 17 cents per share, this offer is for 52, it’s a 200 per cent lift. Short-term investors will be very happy; longer term investors … “

Long Run said Monday it had mutually agreed with Hong Kong-based Maple Marathon Investments Ltd. and MIE Holdings Corp. to cancel an earlier agreement without penalty where it would have given up 39 per cent of its equity in return for $100 million to be used to pay down debt.

Analyst Chad Ellison of Dundee Securities said in a note the buyers are paying about $27,845 per flowing barrel of oil equivalent per day based on 2016 forecast production. He said the deal saves Long Run from a series of looming debt deadlines over the next year — $100 million in January, $125 million in May and $125 million in November.

“Given the state of current commodity and capital markets, there was little certainty that one-off asset sales could cover off the required repayments,” he wrote.

“With all the requisite closing requirements, there is some risk to the deal; however we believe the deal is beneficial to all stakeholders versus operating as a going concern in the current commodity market.”

Andrew said Long Run’s buyers accessed a data room opened to encourage asset sales before indicating their interest in buying the company.

“Asia has equal footing with investors in the U.S., Canada and Europe right now,” he said. “When you have a company that’s being marketed or property being marketed, I think any of the investment bankers will tell you there’s a lot of interest from Asia.”

Long Run said directors, executives and certain shareholders of Long Run have agreed to vote about 11 per cent of the outstanding shares in favour of the transaction, which carries a $20-million non-completion fee.

The company reported a net loss of $305 million (mainly due to a $285-million impairment charge) and cash flow of $35 million in the third quarter. Production averaged 30,700 boe/d, about 60 per cent natural gas.

dhealing@calgaryherald.com

Twitter.com/HealingSlowly