Tamarack Valley to buy oil producer Deltastream in $1.1 bln deal (updated)

Tamarack Valley Energy

12/09/2022 12:41

(Adds deal details, 2023 forecast)
    Sept 12 (Reuters) - Tamarack Valley Energy Ltd  TVE.TO  said
on Monday it would buy oil producer Deltastream Energy Corp in a
deal valued at C$1.425 billion ($1.10 billion), strengthening
its position in Alberta's Clearwater oil play.
    Oil companies are seeking to capitalize on energy prices
which have soared to their highest level in years following
sanctions on major energy exporter Russia.
    The deal comprises C$825 million in cash, C$300 million in
deferred acquisition payment and C$300 million in equity at
C$3.75 per share.
    "The acquisition of Deltastream solidifies Tamarack as the
largest producer in the Clearwater oil fairway," Tamarack CEO
Brian Schmidt said.
    The company added it now expects average production of
68,000 barrels of oil equivalent per day (boepd) to 72,000 boepd
in 2023, including Clearwater production of 23,000 boepd.

($1 = 1.2995 Canadian dollars)

 (Reporting by Arunima Kumar and Ruhi Soni in Bengaluru; Editing
by Krishna Chandra Eluri and Vinay Dwivedi)
 ((Arunima.Kumar@thomsonreuters.com; Twitter: https://twitter.com/Aru_Kumar94
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