CALGARY — Strathcona Resources Ltd. says it will go public through a deal to purchase oil and gas exploration company Pipestone Energy Corp.
Calgary-based oil and gas producer Strathcona says the deal will value the combined business at $8.6 billion.
It adds the new company will become the fifth largest oil producer in Canada.
Strathcona positioned the all-share deal as a way to give Pipestone shareholders a meaningful ownership stake in a large, low-decline rate, oil-weighted producer.
It says the deal will give Pipestone shareholders about 9.05 per cent of the pro forma equity in the amalgamated company on a fully-diluted basis.
Pipestone’s board has already approved the arrangement, but shareholders still need to give their OK for the deal which is expected to close early in the fourth quarter of this year.
This report by The Canadian Press was first published Aug. 1, 2023.
Companies in this story: (TSX:PIPE)
The Canadian Press
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