Canada-based Strathcona Resources has reportedly signed a deal worth C$2.3bn ($1.8bn) to acquire Serafina Energy, a producer of thermal heavy oil in the Canadian province of Saskatchewan.
The deal is expected to close later this month, reported Reuters, citing undisclosed sources having direct information about the development.
In March 2022, the news agency reported that Serafina Energy was mulling the sale of its business.
If closed, the transaction will be the largest acquisition by Strathcona Resources, which is a private oil and gas producer having assets in Western Canada.
Serafina Energy, which was established in 2013, is backed by private equity partners, which include Camcor Partners and Pine Brook Partners.
According to the publication, Serafina Energy draws 40,000 barrels of oil per day (bpd). On its website, the company stated that its facilities utilise steam-assisted gravity drainage (SAGD) technology for recovering leftover reserves from existing heavy oil pools that are on the verge of their primary production ability.
Serafina Energy’s assets include the Edam facility which started production in 2016, Meota West 1 which was brought on stream in 2016, and Meota East and Meota West 2, which began production in 2020 and 2021, respectively.
On the other hand, Strathcona Resources is involved in thermal oil, enhanced oil recovery, and condensate-rich Montney. The company is owned by Waterous Energy Fund.
Its operations are located in Alberta’s Cold Lake oil sands region, the Montney natural gas basin, and the Lloydminster heavy oil region.
Earlier this year, Strathcona Resources completed its merger with Caltex Resources and Stickney Resources. With the acquisitions, Strathcona Resources had increased its production to nearly 110,000 barrels of oil equivalent per day (boe/d) and its proved-plus-probable (2P) reserves to 1.9 billion boe.
