Greenfire Acquisition Corporation (GAC) announces the successful closing of the strategic acquisition of Japan Canada Oil Sands Limited (“JACOS”), which includes a 75% working interest and operatorship of the Hangingstone Expansion site. The definitive sale and purchase agreement to acquire all shares of JACOS, first announced on July 29, 2021, was executed via a GAC-affiliated special purpose acquisition vehicle named HE Acquisition Corporation (“HAC”).

Strategic Rationale

The strategic Acquisition of JACOS unites the Greenfire Hangingstone asset, held by GAC, with the immediately adjacent Hangingstone Expansion site, which share the same tier one oil sands reservoir. GAC plans to sustainably increase production at Hangingstone Expansion through the site’s existing infrastructure, employing the same safe, efficient, and capital-disciplined operating approach that the Company utilized to optimise conditions at the Greenfire Hangingstone asset. Leveraging its deep oil sands expertise, GAC expects these improvements will lead to a material enhancement in profitability and a step change reduction in the site’s carbon intensity per barrel of oil.

Outlook

Management estimates that the combined production from GAC’s portfolio will be more than 20,000 barrels per day (bbl/d) in the near-term and in excess of 30,000 bbl/d in the mid-term.

Corporate Reorganization

The Acquisition represents a major milestone for GAC and its business strategy, positioning the Company as an intermediate sized and low-cost oil sands producer focused on responsible energy development in Canada. Concurrent with the closing of the acquisition and with a positive outlook in future direction, Greenfire Acquisition Corporation will undergo an internal reorganization, which will result in a new go-forward operating entity of the Hangingstone assets named "Greenfire Resources Operating Corporation" (“GROC”). GROC will remain an operationally focussed company with an emphasis on an entrepreneurial environment and employee ownership, which are key pillars of the Company’s identity. By retaining “Greenfire” in the corporate name, it signifies stakeholders’ support and trust in the Company’s employees to continue creating, enhancing and delivering long term value.

GROC, which is backed by McIntyre Partners and Griffon Partners, continues to see a range of attractive investment opportunities in the oil and gas sector in Canada and internationally.