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).
The heavy oil field in the Campos basin was shut in April 2020 due to a rupture of a riser at the Peregrino A platform during a test.
The Scoop and Stack plays are still in the money but only with improved well spacing and effective management of frac-driven interactions.
As the oil and gas industry is increasingly being held to account for its methane footprint, adopting the right technology to detect and stop methane emissions can help it turn this challenge into a golden opportunity.