Baytex to Buy Raging River in $1.2B Oil Sands Deal



Baytex to Buy Raging River in $1.2B Oil Sands Deal
Baytex Energy Corp. agrees to buy rival western Canadian oil producer Raging River Exploration Inc.

(Bloomberg) -- Baytex Energy Corp. agreed to buy rival western Canadian oil producer Raging River Exploration Inc., in a deal valued at C$1.6 billion ($1.2 billion) that includes about 260,000 acres in the emerging East Duvernay Shale basin.

Under the pact, holders of common shares of Raging River will receive 1.36 common shares of Baytex for each Raging River Share owned, according to a statement Monday. Upon close, expected in August, the company will operate as Baytex with Neil Roszell, Raging River’s chairman and chief executive officer, as chairman.

The combination of East Duvernay and light oil from the Viking Formation “are both positives,” Greg Pardy, an analyst at Royal Bank of Canada, said in a note Monday. “All of this is likely to make Baytex a more investable producer from an institutional standpoint.”

Canadian Imperial Bank of Commerce and the Bank of Nova Scotia are co-financial advisers to Baytex. GMP FirstEnergy is exclusive financial adviser to Raging River.

To contact the reporter on this story: Brian Eckhouse in New York at beckhouse@bloomberg.net. To contact the editors responsible for this story: Lynn Doan at ldoan6@bloomberg.net Christine Buurma, Reg Gale.



WHAT DO YOU THINK?


Generated by readers, the comments included herein do not reflect the views and opinions of Rigzone. All comments are subject to editorial review. Off-topic, inappropriate or insulting comments will be removed.

RELATED COMPANIES