Baytex buys Raging River for $2.8 billion to grab bigger share of oil-rich Duvernay
Canadian oil and gas producer Baytex Energy Corp said on Monday it would buy rival Raging River Exploration Inc for about $2.8 billion to expand in the oil-rich Duvernay field in Alberta.
Canadian producers and global oil majors are increasingly exploring the Duvernay and Montney formations, which they say could rival the most prolific U.S. shale fields. The combined company will have annual production of 100,000 to 105,000 barrels of oil equivalent per day and plans capital expenditure between $750 and $850 million in 2019.
Raging River shareholders will get 1.36 shares of Baytex for each share they hold, the companies said in a statement.
вЂњThis combination creates a diversified, well-capitalized oil producer вЂ¦ and the ability to materially advance our East Duvernay Shale light oil opportunity,вЂќ Raging River Chief Executive Officer Neil Roszell said in a statement on Monday.
The deal is expected to close in August 2018.
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