(Calgary) Canadian Natural Resources said on Wednesday it has reached an agreement to acquire oil and gas explorer Storm Resources at a price of $ 6.28 per share, which sets the value of the Calgary company at 960 million.
The purchase price represents the highest level ever reached by Storm stock, as well as a 10% premium over its 10-day volume weighted average price on the Toronto Stock Exchange, at close Tuesday markets.
The agreement will give Canadian Natural access to Storm’s existing production and infrastructure in the Montney area of northeastern British Columbia, where it already operates.
Canadian Natural says Storm’s current production in the region is approximately 136 million cubic feet per day of natural gas and 5,600 barrels per day of natural gas liquids.
As part of the proposed deal, Canadian Natural will assume Storm’s total debt of approximately $ 186 million. The deal is expected to be finalized in December.
In August 2020, Canadian Natural acquired another Montney producer, Painted Pony Energy, for $ 469 million.