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Update: Greenfire Resources to Buy Connacher Oil and Gas for C$1.28 Billion

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(Updates with details on the acquisition and share movement. )

Greenfire Resources (GFR.TO, GFR) shares rose 9.4% on Monday after it agreed to buy closely held Connacher Oil and Gas for C$1.28 billion in cash.

Connacher's Great Divide oil-sands project is expected to produce 19,500 barrels of bitumen per day this year.

The company expects, pro forma the acquisition, 2026 production of about 34,000 barrels per day (bbl/d) with proved plus probable reserves of 850 million of barrels of oil), with a long-term plan to increase production to about 65,000 Bbl/d.

The company expects to finance the deal with a mix of debt and equity, comprised of an about C$700 million draw on an underwritten C$1.0 billion reserves-based loan, and a C$575 million underwritten bridge facility, which, post-closing of the acquisition, will be repaid with proceeds from an anticipated rights offering of Greenfire shares. The company expects to launch the rights offering in August.

Waterous Energy Fund has committed to provide a standby commitment of at least C$575 million for the rights offering, the company said.

Shares of Greenfire were last seen up C$0.74 to C$8.59 on the Toronto Stock Exchange.

Price: $8.63, Change: $+0.78, Percent Change: +9.94%

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