In the latest flurries of Acquisitions and financing in the sector , Whitecap resources Inc. said on Monday that it is buying Western Canadian oil and Gas properties from Imperial oil ltd. for $855 million.
A big reason for the massive increase is a brighter outlook for Canadian oil and natural gas prices following the unusual frigid winter, which prompted a surge in heating demand.Whitecap,one of the new breed of small energy producers set up to provide investors with stock- price gains and dividends,issued $500 million in subscription receipts to help fund its acquisition.
Whitecap,led by Chief executive officer Grant Fagerheim ,said its takeover of Imperial`s properties at boundary lake in British Columbia and Cynthia-West Pembina and Rocky mountain house in Alberta will boost its 2014 production by 13 percent and market share by 21 per cent.
Its shares jumped 7 per cent to 12.34 per cent on the Toronto Stock Exchange.
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