Canadian oil and gas producer Strathcona Resources has signed a deal to acquire private equity-backed Serafina Energy for C$2.3bn ($1.8bn), reported Reuters, citing sources with direct knowledge of the matter.

Canadian intermediate heavy oil company Serafina Energy owns properties that are strategically comprised of high-quality, proven, low risk assets.

Upon completion, the transaction would be the largest acquisition by the Canadian private oil and gas producer, Strathcona.

The deal comes months after Serafina Energy said it was considering the sale to capitalise on the surging crude oil prices, reported Reuters.

The sale is part of the firm’s private equity owners’, including Pine Brook Partners, and Camcor Partners, plan to exit their investment in the Canadian oil producer.

Strathcona said earlier that it plans to acquire oil and gas assets with the potential to add production organically.

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Reuters cited sources as saying that the latest transaction is anticipated to be closed on 29 August 2022.

Serafina Energy is engaged in producing thermal heavy oil at its steam assisted gravity drainage (SAGD) facilities in Edam and Meota, Saskatchewan, Canada.

It has a production capacity of 40,000 barrels of oil equivalent per day (boepd) in the province of Saskatchewan.

Earlier this year, Strathcona acquired Caltex Resources, as well as Tucker thermal oil field assets, in Alberta, Canada.

Strathcona is focused on the thermal oil, enhanced oil recovery, and condensate-rich Montney basin in Alberta and British Columbia.

It also has operations in the Cold Lake oil sands region of Alberta, the Lloydminster heavy oil region, and the Montney natural gas basin, spanning west central Alberta and NE British Columbia.

Strathcona is 100% owned by its private-equity sponsor Waterous Energy Fund and Strathcona employees, and has a production capacity of 110,000 to 115,000boepd, most of which is liquids.