Business information

Private equity-backed Strathcona buys assets of rival Caltex and Tucker

March 14 (Reuters) – Canadian oil and gas producer Strathcona Resources Ltd said on Monday it has acquired rival Caltex Resources Ltd, as it seeks to expand its oil recovery portfolio in Saskatchewan.

Oil and gas producers across North America have shored up assets to take advantage of high global crude prices, up nearly 45% this year as demand outstripped supply even before the invasion of Ukraine by Russia, a major oil exporter.

Strathcona bought Caltex for an estimated C$665 million, said an industry source familiar with the value of Canadian energy assets. Strathcona and Caltex have not publicly disclosed the value of the transaction.

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Strathcona also said it purchased the Tucker Thermal Oil Field assets in Alberta in January, through an entity called Stickney Resources Ltd.

Strathcona did not disclose the seller, but in December Cenovus Energy Inc (CVE.TO) announced that it had agreed to sell its Tucker thermal assets in northeastern Alberta to an undisclosed buyer for 800 million Canadian dollars.

Strathcona, which produces 80,000 barrels of oil equivalent per day, said the deals had boosted its output to around 110,000 boepd.

The company made the deals through its owner Waterous Energy Fund

Reuters reported in September last year that Strathcona was in advanced talks to buy Caltex for around C$700 million ($548.89 million).

Caltex is deploying enhanced oil recovery (EOR), a production method that injects polymers or carbon into the ground to extract hard-to-reach oil, thereby extending the life of oilfields.

Strathcona, formed last year by the merger of two Waterous-backed companies, is also deploying enhanced oil recovery in Saskatchewan.

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Reporting by Ruhi Soni in Bengaluru and Rod Nickel in Winnipeg; Editing by Shailesh Kuber

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