Canadian oil and gas producer Baytex Energy Corp said it would buy rival Raging River Exploration Inc for an estimated $2.8 billion to expand in Alberta’s oil-rich Duvernay field.
According to Reuters, Canadian oil producers and global majors have made a beeline for the Duvernay and Montney formations, known for their light oil, which is easier to refine and cheaper to produce than northern Alberta’s oil sands crude.
Seven Generations and Encana Corp are among leading Canadian producers operating in the two regions, while Chevron Corp announced its first Canadian shale development in the Duvernay in November.
The combined company, which will be led by Baytex Chief Executive Edward LaFehr, expects to produce 100,000 to 105,000 barrels of oil equivalent per day in 2019 and forecast capital expenditure of between $750 million and $850 million for the same period.
(Reuters)
