Calgary-based Baytex Energy Corp. has announced that it will be merging with Raging River Exploration Inc. in the aim of boosting its presence in Alberta, namely with its East Duvernay Shale operations.
The combined company, operating under the Baytex brand, is expected to produce approximately 94,000 barrels of oil equivalent daily across its asset portfolio.
The transaction will see Raging River Exploration shareholders receiving 1.36 common Baytex shares per each Raging River share, valuing the total deal at approximately CAD$2.8bn.
“This combination creates a diversified, well capitalized oil producer that has an impressive suite of high quality producing assets and the ability to materially advance our East Duvernay Shale light oil opportunity, while continuing to develop our Eagle Ford, Viking, Peace River and Lloydminster core assets,” said Neil Roszell, Executive Chairman and Chief Executive Officer of Raging River.
“The combined company has a dominant 260,000 net acre position in the emerging East Duvernay Shale oil play which has the potential to compete for capital with the best plays in North America,” said Edward LaFehr, President and CEO of Baytex.
Roszell will serve as Chairman of the newly combined company, whilst LaFehr will act as President and CEO.