A small Calgary-based energy company announced that it has extended the expiry of its offer to purchase all of the issued and outstanding common shares of Bonterra Energy Corp. (TSX:BNE). This extension made shares of the potential acquiring company, Obsidian Energy Ltd. (TSX:OBE) pop as it was viewed as being flexible in its dealings to complete this strategic acquisition.
Obsidian Energy is an intermediate-sized oil and gas producer with strategic assets in Alberta. It operates in a single reporting segment that is exploration, development and holding an interest in oil and natural gas properties and related production infrastructure in the Western Canada Sedimentary Basin. The company generates the majority of the revenue from the Crude oil sale.
Bonterra is an oil and gas exploration company operating in the Western Canadian Sedimentary Basin. The company develops and produces crude oil, natural gas, and natural gas liquids. Bonterra operates in one industry and has only one reportable segment. Its assets consist of crude oil and natural gas assets.
Traders seemed to be bullish on the extension headline as shares of Obsidian traded up to a session high of $1.14/share (+3.64%). This move is a strong continuation of the success this stock has had over the last few months.
