Canadian Natural Resources Ltd. (CNRL) says it has reached an agreement to acquire Calgary-based oil and gas explorer Storm Resources Ltd. for $ 6.28 per share, a price that sets Storm’s business value. at $ 960 million.
The purchase price represents an all-time highest share price for Storm, as well as a 10 percent premium to Storm’s 10-day volume-weighted average trading price on the Toronto Stock Exchange at the close of markets on Tuesday.
The deal will give CNRL access to Storm’s existing production and infrastructure in the Montney area of northeastern British Columbia, where CNRL already has operations.
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CNRL says Storm’s current production in the area is about 136 million cubic feet per day of natural gas and 5,600 barrels per day of natural gas liquids.
As part of the proposed settlement, CNRL will assume Storm’s total debt of approximately $ 186 million. The deal is expected to close in December.
In August 2020, CNRL acquired another Montney producer, Painted Pony Energy Ltd., for $ 469 million.
© 2021 The Canadian Press
Reference-globalnews.ca