• Sign up for the Daily Digest E-mail
  • Facebook
  • Twitter
  • LinkedIn

BOE Report

Sign up
  • Home
  • Headlines
    • Latest Headlines
    • Featured Companies
    • Columns
    • Discussions
  • Well Activity
    • Well Licences
    • Well Activity Map
  • Property Listings
  • Land Sales
  • M&A Activity
    • M&A Database
    • AER Transfers
  • Markets
  • Rig Counts
    • CAOEC Rig Count
    • Baker Hughes Rig Count
    • USA Rig Count
  • Industry Data
    • Canada Oil Market Data
    • Canada NG Market Data
    • USA Market Data
    • Data Downloads
  • Jobs

Obsidian Energy formalizes share swap bid for Calgary rival Bonterra Energy

September 21, 202011:28 AM The Canadian Press0 Comments

CALGARY – Obsidian Energy Ltd. is formalizing its hostile takeover bid for rival Bonterra Energy Corp.

It says it will offer two Obsidian shares for each Bonterra share until Jan. 4.

The share-swap offer is the same as the proposal in a declaration of intent made in late August, despite Bonterra shares continuing to trade for more double those of Obsidian.

On Friday, Bonterra stock closed at $1.22 per share, about 2.1 times the value of Obsidian stock at 57 cents.

In a news release, Obsidian says the takeover would create a “Cardium champion” by combining the two companies’ assets in the region, while providing financial strength to add to that base by buying other Cardium lands.

It says the merged company have production of 35,000 barrels of oil equivalent per day, three times the size of Bonterra in the second quarter.

“Since we publicly announced our interest in a combination with Bonterra, we have received encouraging feedback from a significant number of shareholders of both companies and other interested parties that reinforces our view that the combination of Obsidian Energy and Bonterra is in the best interests of both companies and their respective stakeholders,” interim Obsidian CEO Stephen Loukas said.

Bonterra didn’t formally respond to the initial Obsidian approach, but said it would continue to pursue financing from the Business Development Bank of Canada, in co-operation with its existing syndicate of lenders, that would allow it to restart its suspended capital program and allow it to bring production back to last year’s levels.

29dk2902l

Bonterra Energy Cardium Obsidian Energy

Follow the BOE Report
  • Facebook
  • Twitter
  • LinkedIn

Sign up for the BOE Report Daily Digest E-mail

Successfully subscribed

Latest Headlines
  • Canada’s weekly rig count at 205
  • Oil prices slip on cloudy demand outlook, but poised for weekly gain
  • U.S. natgas futures slide 3% on cooler forecasts, lower demand
  • PetroChina announced intention to delist the American depositary shares from the NYSE
  • Heavy and synthetic crude steady

Return to Home
Alberta Gas
CAD/GJ
Market Data by TradingView

    Report Error





    Note: The page you are currently on will be sent with your report. If this report is about a different page, please specify.

    About
    • About BOEReport.com
    • In the News
    • Terms of Use
    • Privacy Policy
    • Editorial Policy
    Resources
    • App
    • Widgets
    • Notifications
    • Daily Digest E-mail
    Get In Touch
    • Advertise
    • Post a Job
    • Contribute
    • Contact
    • Report Error
    Featured In
    • CamTrader
    • Rigger Talk
    Data Partner
    • Foxterra
    BOE Network
    © 2022 Grobes Media Inc.