Obsidian Energy said it intends to make an offer to purchase all of the issued and outstanding common shares of Bonterra Energy Corp. The deal proposes exchanging two common shares of Obsidian Energy for each share of Bonterra.
“We believe our offer is in the best interests of Obsidian Energy and Bonterra shareholders,” said Stephen Loukas, interim president and CEO of Obsidian. “The combination of our companies creates a ‘cardium champion’ with an improved cost structure, increased capital markets relevance and positions us favorably for further consolidation within the basin.”
Loukas noted that while the offer of two Obsidian shares for each Bonterra share is currently below a trading price-based exchange ratio, Obsidian has found it to be a highly compelling exchange ratio.
Bonterra currently trades at a premium to Obsidian and other relevant public oil producing companies, despite recent performance that has been weaker than Obsidian in terms of
