Canadian oil and gas producer Strathcona Resources Ltd said on Monday it has bought rival Caltex Resources Ltd, as it looks to expand its oil-recovery portfolio in Saskatchewan.
Oil and gas producers across North America have been consolidating assets to capitalize on strong global crude prices, up almost 45% this year, as demand outstripped supply even before Ukraine’s invasion by Russia, a major oil exporter.
Strathcona bought Caltex for an estimated C$665 million, an industry source with knowledge of Canadian energy asset values said. Strathcona and Caltex have not publicly disclosed the deal value.
Strathcona also said it had bought Alberta’s Tucker thermal oil field assets in January, through an entity called Stickney Resources Ltd.
Strathcona did not reveal the seller, but in December, Cenovus Energy Inc said it had agreed to sell its Tucker thermal assets in northeastern Alberta to an undisclosed buyer for C$800 million.
Strathcona, which produces 80,000 barrels of oil equivalent per day, said the deals have raised its production to around 110,000 boepd.
The company made the deals through its owner Waterous Energy Fund
Reuters had reported in September last year that Strathcona was in advanced talks to buy Caltex for around C$700 million ($548.89 million).
Caltex deploys enhanced oil recovery (EOR), a method of production that injects polymers or carbon into the ground to extract hard-to-reach oil, extending the lifespan of oilfields.
Strathcona, formed last year by the merger of two Waterous-backed companies, also deploys enhanced oil recovery in Saskatchewan.
Source: Reuters.com