Baytex Energy Corp. said it will acquire Australia-based Aurora Oil & Gas for $2.4 billion, which is the largest acquisition ever for the Canadian natural gas development and exploration company. Baytex will also take on Aurora Oil & Gas' debt of about $672 million. In the agreement with Aurora Oil & Gas, Baytex will be able to operate in Sugarkane field in south Texas, which is at the core of the Eagle Ford shale, Reuters reported.
"Baytex will acquire premier acreage in the core of the Eagle Ford, one of the leading shale oil plays in the U.S.," James Bowzer, president and chief executive officer of Baytex said in a statement.
Aurora's Sugarkane field includes 22,200 acres and 166.6 million barrels of reserves. U.S. oil production is expected to ultimately grow to a 25-year high with the help of major shale regions like the Eagle Ford, according to Reuters.
"This is a highly accretive transaction on a per share basis to reserves, production, and funds from operations,"Bower said. "The Eagle Ford play provides not only exposure to light oil, but also to Gulf Coast crude oil markets with established transportation systems."
More information on the Eagle Ford shale can be found on PennEnergy's research area.
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