The acquisition of bankrupt Connacher Oil & Gas Ltd., Calgary, by East River Oil & Gas Ltd. has received court approval.
Connacher on Aug. 2 had named the subsidiary of Changchun Sinoenergy Corp. of China as successful bidder in its investment solicitation under the Companies’ Creditors Arrangement Act (CCAA).
Connacher sought creditor protection under the CCAA in May 2016.
East River proposes to buy all Connacher shares for $113.5 million (Can.).
The transaction remains subject to other approvals, including by creditors scheduled to meet in Calgary on Oct. 2.
In the first quarter, Connacher produced a combined average of 12,670 b/d of bitumen from two steam-assisted gravity drainage projects, Pod One and Algar, in the Great Divide area southwest of Fort McMurray, Alta.
The company holds 87,000 acres under lease in the area, where it estimates proved and probable reserves at 441 million bbl. It reported a first-quarter net loss of $57.2 million.
