CLOSING OF AN OIL SECTOR DEAL
The process of closing the deal is often not as simple as it may seem. The parties to the transaction can put in considerable time, energy and money in furtherance of their objective goals, yet the closing of the deal may elude them or staved off by their counterparts. Whether it is because one party sees the business deal as no longer being opportune or problems arise that preclude the deal proceeding from a legal or financial basis, there can be a wide range of reasons for a deal being halted in mid-stream.
The question than becomes: What are the parties to the proposed deal to do? This is a particularly loaded question, as the choices give rise a variety of further issues and concerns that each corporate party must properly assess and factor into their decision. Should they make concessions to make the deal work? Should they invoke contractual provisions in their original agreements to advance the process? Should they proceed to arbitration or litigation to enforce their contractual rights? Should they step away from the transaction in its entirety (though addressing costs associated with such termination)?
These are important, yet sensitive, questions that need to be properly addressed, while disengaging oneself to a certain degree from the emotional element associated with such situations, given their tendency to overwhelm the participants and impact their decisions. At such times it is important to properly heed the counsel of your lawyer and recognize that their direction is intended to provide sound advice that is in the best interests of the company, as the entire corporate team seeks to deal with such a turn of events.
As such, when your company is dealing with the challenges associated with closing an oil acquisition, merger or joint venture, you should be looking to the legal and advisory services of Neufeld Legal P.C. With our primary emphasis on corporate mergers, acquisitions and joint ventures, Neufeld Legal P.C. is your source for assertive and knowledgeable legal and consultative advice. Contact us at Chris@NeufeldLegal.com or 403-400-4092.
Significant Oil & Gas Legislation
Oil Sands Conservation Act
Approval of scheme or operation
10(1) No person shall
(a) construct facilities for a scheme or operation, or
(b) commence or continue a scheme or operation for the recovery of oil sands or crude bitumen, unless the Board, on application, has granted an approval in respect of the scheme or
(2) The Board shall, on receiving an application referred to in subsection (1), make any investigations or inquiries and hold any hearings that it considers necessary or desirable in connection with the application.
(3) The Board may, with respect to an application referred to in
(a) if in its opinion it is in the public interest to do so, and with the prior authorization of the Lieutenant Governor in Council, grant an approval on any terms and conditions that the Board considers appropriate,
(b) refuse to grant an approval,
(c) defer consideration of the application on any terms and conditions that the Board may prescribe, or
(d) make any other disposition of the application that the Board considers appropriate.
* For the full statute, please click on this link. Nothing should be read in the abstract and specific legal advice is always recommended.