Long Run Exploration Ltd. has found a buyer for all of its oil and gas possesion in Northern Alberta. Chinese investors agreed to pay $770 million for everything. The investors are set to pay a 215 per cent premium on the company's share price of 16 cents, with a cash consideration of $100 million and also assumed debt total consideration of $770 million.

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The Chinese investors have much experience in operating and investing in the oil and gas sector and have reportedly "recently undertaken and completed significant controlling investments into the upstream oil and gas sector in Canada."

The deal is a "Christmas miracle" said Chad Ellison, an analyst at Dundee Securities in a note to clients. He noted that the takeover solves the company's significant debt concerns.

"It's a big surprise," Ellison said in an interview, as the company had been over-leveraged after the past few years and had been "offside on some of its lines." The company had been looking to sell assets as it faced debt repayments of $350 million over the next year.

Long Run produced the equivalent of about 31,000 barrels of oil a day in the third quarter from its assets in the Peace River Montney, the Deep Basin, and the Redwater Viking.

Long Run had been in discussions with various Chinese parties and had secured a $100 million private placement with Hong Kong-based Maple Marathon Investments Ltd. That agreement has now been terminated, according to the company.

More details will be included in the information circular to be mailed to Long Run shareholders and debenture holders in connection with the Special Meeting. The Special Meeting is expected to be held in mid-February 2016 and the closing of the Transaction will occur thereafter provided both parties are satisfied with the conditions of the agreement.

TagsLong Run Exploration Ltd., Christmas Miracle, Agreement