Baytex Energy Corp , a Canadian heavy oil producer, said on Thursday it will purchase Aurora Oil & Gas Ltd for C$2.6 billion ($2.35 billion) to add production from the prolific Eagle Ford shale oil region of Texas. Baytex is offering A$4.10 for each share of the Perth, Australia-based oil producer, a 53 percent premium to its closing price on Thursday. Baytex said it will pay a total C$1.8 billion for the shares and assume C$744 million of Aurora's long-term debt.The acquisition, which will be funded in part with a C$1.3 billion share issue underwritten by Scotiabank and RBC Capital markets, will bring to Baytex Aurora's 22,200 acres of exploration lands and 166.6 million barrels of reserves in the Sugarkane field in south Texas, which Baytex says lies in the heart of the Eagle Ford region."Baytex will acquire premier acreage in the core of the Eagle Ford, one of the leading shale oil plays in the (United States)," James Bowzer, Baytex's chief executive, said in a statement.Aurora produces 24,678 barrels of oil equivalent per day, just more than half the 57,100 boepd Baytex produced last year.
Baytex Energy Corp. (Baytex), through its subsidiaries, are engaged in the business of acquiring, developing, exploiting and holding interests in petroleum and natural gas properties and related assets in Canada (in the provinces of British Columbia, Alberta and Saskatchewan) and in the United States (in the states of North Dakota and Wyoming). Shares of BTE traded higher by 1.24% or $0.46/share to $37.62. In the past year, the shares have traded as low as $34.71 and as high as $47.47. On average, 199671 shares of BTE exchange hands on a given day and today's volume is recorded at 289996.
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