Baytex acquires Aurora Oil & Gas for access to Eagle Ford acreage
CALGARY -- Canadian Baytex Energy and Australia-based Aurora Oil & Gas Limited announced they have entered into an agreement whereby Baytex will acquire, through a scheme of arrangement under Australian law 100% of the shares of Aurora, on a fully diluted basis, for $3.67 cash per share. The total consideration to be paid by Baytex is approximately $1.8 billion, plus assumed debt of approximately $744 million for a total transaction value of approximately $2.6 billion.
Commenting on the Acquisition, James Bowzer, President and CEO of Baytex, said, "Baytex will acquire premier acreage in the core of the Eagle Ford, one of the leading shale oil plays in the U.S. The Acquisition is an excellent fit with our existing business model and positions Baytex in another world-class oil resource play. The Acquisition will provide our shareholders with exposure to lowrisk, repeatable, high-return projects with leading capital efficiencies."
"This is a highly accretive transaction on a per share basis to reserves, production, and funds from operations," said Bowzer. "The Eagle Ford play provides not only exposure to light oil, but also to Gulf Coast crude oil markets with established transportation systems. A portion of the produced crude oil benefits from Louisiana Light Sweet based pricing, which currently trades at a premium to WTI."