Greenfire Resources acquires Conacher Oil & Gas for CAD 1.27 billion

Greenfire Resources, a Canadian company, announced that it has reached an agreement to acquire the privately owned Conacher Oil & Gas in a cash deal valued at approximately 1.27 billion Canadian dollars, equivalent to about 900 million US dollars.

It is expected that the deal, once completed, will contribute to raising Greenfire's production in 2026 to about 34,000 barrels per day, with the combined reserves of the two companies reaching nearly 850 million barrels.

The acquisition is part of a long-term expansion plan aimed at increasing the company's production to about 65,000 barrels per day, relying on a larger base of assets and reserves in the Canadian oil sands sector.

Conacher specializes in producing thermal oil sands and fully owns and operates the Great Divide oil sands project, which is expected to produce about 19,500 barrels per day in 2026.

Conacher's proven and probable reserves are estimated at about 441 million barrels, providing Greenfire with significant additional assets and enhancing its ability to expand production in the future.

The acquisition will be financed through a mix of debt and equity, including drawing about 700 million Canadian dollars from a reserves-based loan after raising its ceiling to one billion Canadian dollars.

The financing structure also includes a bridge facility of 575 million Canadian dollars, which will be repaid from the proceeds of a planned rights offering.

The Watrous Energy Fund has committed to providing financial support of no less than 575 million Canadian dollars, helping to secure the liquidity needed to complete the deal according to the announced schedule.

Greenfire expects that the integration of the two companies' operations will achieve annual savings of about 30 million Canadian dollars by the end of 2026.

These savings are expected to come from consolidating transportation, processing, and marketing operations, as well as reducing operating and administrative costs and improving efficiency across the combined assets.

The deal represents an important step in Greenfire's expansion path within the oil sands sector, granting it a larger production volume, a broader reserve base, and better capacity to finance future growth projects.

The acquisition is expected to be completed by August 2026, after fulfilling closing conditions and obtaining the necessary approvals.