Canadian juniors Baytex Energy and Raging River Exploration have agreed to an all-stock merger valued at C$1.6 billion (US$1.2 billion), writes Caroline Evans.
Under the terms of the deal, Raging River shareholders will receive 1.36 shares of Baytex stock for each unit of Raging River stock. The combined company will operate under the Baytex name.
The merger will result in a company with a diverse, North American oil-focused portfolio, combining Baytex's 20,000-acre position in the Eagle Ford of Texas in the US and heavy oil operations at Peace River and Lloydminster in Alberta with Raging River's 260,000 net acres in the East Duvernay shale basin as well as its Viking asset in Saskatchewan and Alberta.
