Total to Buy Canada’s Deer Creek for C$1.35 Billion

Total SA, the world’s fourth-largest publicly traded oil company, agreed to buy Canada’s Deer Creek Energy Ltd. for C$1.35 billion ($1.11 billion) to tap growing output in northern Alberta’s oil sands.

The buyer will pay C$25 a share in cash, Calgary-based Deer Creek said today in a statement. Deer Creek shares jumped 39 percent to C$24.95 in Toronto. Paris-based Total said Deer Creek owns 84 percent of leases for the Joslyn oil-sands project, which may hold 2 billion barrels of bitumen, a tar-like oil.

…..

Oil-sands output in Canada, the second-biggest supplier of crude oil to the U.S., is expected to surge 10 percent annually to about 2.7 million barrels of oil a day within a decade, up from about 1 million barrels a day currently, the Canadian Association of Petroleum Producers said last month in a report.
Bloomberg