Cimarex has signed an agreement to acquire Resolute Energy for $1.6bn.

Under the agreement, the shareholders of Resolute Energy will obtain 0.3943 shares of Cimarex common stock, along with $35 a share or a combination of 0.2366 shares of common stock and $14 a share in cash.

Cimarex shareholders will own a 94.4% interest in the combined entity, while Resolute shareholders will hold a 5.6% interest, upon completion of the transaction.

The transaction will enable Resolute to acquire 21,100 net acres in Reeves County and strengthen its position in the Permian Basin. It will also help Resolute to clear a $710m long-term debt.

“The sale is planned to meet the government’s divestment target for 2018 and anticipated to raise Rs165bn ($2.3bn).”

Both based in the US, Cimarex is a petroleum and natural gas exploration and production company, while Resolute Energy is an oil and gas firm.

The Indian Government has announced plans to divest 5%, 3% and 10% equity stakes worth $2bn in Oil and Natural Gas (ONGC), Indian Oil (IOC), and Oil India (OIL).

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The government respectively holds 67.48%, 56.75% and 66.13% stakes in ONGC, IOC and OIL. The sale is planned to meet the government’s divestment target for 2018 and anticipated to raise Rs165bn ($2.3bn).

The divestment target for the government is set at Rs800bn ($11.15bn), of which 25% has been achieved, including the divestment of a 3% stake in Coal India.

Prairie Provident Resources has completed the acquisition of Marquee Energy.

The transaction included the acquisition of all the outstanding shares of Marquee on a share exchange basis. Shareholders of Marquee received an aggregate of 38.6 million common shares of Prairie Provident for each share held.

The acquisition provides Prairie Provident with a 90% operatorship in the light-oil rich areas of Michichi/Wayne, Princess, and Evi. It will also help in increasing the company’s average production.

Prairie Provident and Marquee Energy are both Canada-based oil and gas exploration and production companies.