Strathcona Resources to go public through deal to buy Pipestone Energy

Strathcona Resources Ltd. says it’s going to go public by a deal to buy oil and fuel exploration firm Pipestone Energy Corp.

Calgary-based oil and fuel producer Strathcona says the deal will worth the mixed business at $8.6 billion.

It provides the brand new firm will grow to be the fifth largest oil producer in Canada.

Strathcona positioned the all-share deal as a strategy to give Pipestone shareholders a significant possession stake in a big, low-decline fee, oil-weighted producer.

It says the deal will give Pipestone shareholders about 9.05 per cent of the professional forma fairness within the amalgamated firm on a fully-diluted foundation.

Pipestone’s board has already authorized the association, however shareholders nonetheless want to present their OK for the deal which is anticipated to shut early within the fourth quarter of this 12 months.