The merger is the largest deal in the Canadian oil sector this year. It will make the combined company the largest landowner in the Montagne and Duvernay regions of Alberta, two of the most important shale deposits in North America.
The combined company owns an “impressive” 1.5 million acres across two tracts, two-thirds of which are in Montney and the remaining third in Duvernay, Whitecap Vice President Joey Wong said in a presentation to investors.
The combined company is expected to produce 370,000 barrels of oil equivalent per day (boe/d), of which 63% will be liquid hydrocarbons.
According to Whitecap CEO Grant Fagerheim, the merger will create a new company with a large capitalization and a strengthened financial position.
“We are more resilient and better able to cope with the current macroeconomic situation, including the threat of remaining tariffs and commodity price volatility,” Fagerheim said.
Source: Reuters
