Greenfire Resources Ltd. entered a definitive agreement to acquire all the issued and outstanding shares of Connacher Oil and Gas Ltd. for about $1.277 billion in cash consideration, net of closing adjustments.

Connacher is a private thermal oil sands company with a 100% operated interest in the Great Divide oil sands project.

In 2026, production from Great Divide is expected to average about 19,500 b/d (100% oil) with a 3x steam-oil-ratio (SOR). Great Divide has proved plus probable 2P reserves of about 441 million bbl, equivalent to a 62-yr reserves life index.

Great Divide is directly adjacent to Greenfire’s Hangingstone assets, enabling more efficient development of the combined asset base. Greenfire has identified midstream, marketing, operating cost, and G&A synergies of about $30 million/yr, which it expects to realize by the end of 2026.

Pro forma the acquisition, Greenfire will have anticipated 2026 production of about 34,000 b/d (100% oil) with a long-term plan to increase production to about 65,000 b/d.

Combined, Connacher and Greenfire proved plus probable 2P reserves are 850 million bbl (equating to a reserves life index of about 68 yr), representing the the sixth largest proved oil reserves amongst all Canadian oil operators behind only the four oil sands seniors and Strathcona Resources Ltd.

Greenfire said it expects to finalize the transaction in August 2026 subject to customary closing conditions and receipt of customary required approvals.