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TransGlobe president Ross Clarkson may want a Board transfer

TransGlobe Energy is 118th on the 2013 V250 list

Jul 18, 2014

by Alberta Venture Staff

118th on 2013 V250 list
Headquarters: Calgary
Senior executive: Ross Clarkson
Sector: Resource Industry
2012 revenue: $316,370,000
2011 revenue: $251,620,000
Growth rate: 26 per cent

The Background
TransGlobe Energy has a significant stake in oil and gas in Egypt and the Republic of Yemen, producing 18,284 barrels of oil equivalent per day in 2013. Evidence from recent deals suggests that longtime president of TransGlobe Ross Clarkson may be itching to give up the helm and jump into a board position.

The Good News
TransGlobe and Caracal Energy announced in March 2014 that they had come to an agreement to merge. Under the deal, TransGlobe shareholders would receive 1.23 Caracal shares for every common share, which represents an 11 per cent premium over trading rates at the time of the deal. The companies would then operate under the Caracal name with Ross Clarkson and COO Lloyd Herrick set to join the existing Caracal board.

The Bad News
A month after the agreement to merge was announced, Caracal left TransGlobe at the altar. Under the agreement, either side could break free if a superior offer was put to them. Caracal received a handsome offer from Glencore– a huge international resource company with a widely diversified portfolio. The irresistible offer made the US$9.25-million break fee look like a small pittance. Since being dumped, TransGlobe has been paying damage control to shareholders – opting to use the break-up fee to bump up the latest dividend cheques.

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