Private equity firm Waterous Energy Fund succeeded in its bid to take controlling interest in Osum Oil Sands on March 2, days after the Canadian oil producer’s board ended its opposition to the deal.
Osum had earlier rejected Waterous’ original offer to take over the company, calling it inadequate. However, last week, the company’s board withdrew its recommendation that shareholders reject Waterous’ approach after a sweetened bid.
The deal comes as consolidation heats up in the Canadian oil industry, as operators look to scale up and cut costs to capitalize on a recent recovery in crude prices from the lows touched during the COVID-19 pandemic.
In recent weeks, Canadian oil and gas producer ARC Resources Ltd. announced an agreement to buy rival Seven Generations Energy Ltd., while investment firm Brookfield Infrastructure Partners LP launched a hostile takeover bid for oil and gas transportation company Inter Pipeline.
Waterous’ latest offer was to buy up to 57 million shares of the oil and gas producer at C$3 per share, implying a deal value of C$171 million ($135.62 million).
Recommended Reading
Tethys Oil Suspends Kunooz-1 Well in Oman
2024-12-13 - The decision to suspend its Kunooz-1 exploration well comes after flow testing failed to confirm the presence of commercially-viable hydrocarbons, Tethys said.
Analysis: Middle Three Forks Bench Holds Vast Untapped Oil Potential
2025-01-07 - Williston Basin operators have mostly landed laterals in the shallower upper Three Forks bench. But the deeper middle Three Forks contains hundreds of millions of barrels of oil yet to be recovered, North Dakota state researchers report.
First Helium Plans Drilling of Two Oil Targets in Alberta
2024-11-29 - First Helium Inc. has identified 10 other sites in the Leduc formation.
QatarEnergy Joins Joint Venture Offshore Namibia
2024-12-17 - QatarEnergy acquired a 27.5% stake in petroleum exploration license 90 offshore Namibia.
Valeura Energy Updates Jasmine Development Offshore Thailand
2024-11-27 - Valeura Energy has seen aggregate oil production of 10,000 bbl/d in its offshore Gulf of Thailand development over a seven-day period.