Greenfire Resources has entered into a definitive agreement to acquire all of the issued and outstanding shares of Connacher Oil and Gas for approximately $1.277 billion in cash consideration, net of closing adjustments.

Connacher is a private thermal oil sands company with a 100% operated interest in the Great Divide oil sands project. In 2026, production from Great Divide is expected to average approximately 19,500 Bbl/d (100% oil) at a steam-oil-ratio ('SOR') of ~3.0x. Great Divide has proved plus probable reserves of approximately 441 MMBbl, equating to a 62-year reserves life index.

Great Divide is located directly adjacent to Greenfire’s Hangingstone assets, enabling more efficient development of the combined asset base. Greenfire has identified midstream, marketing, operating cost, and G&A synergies of approximately $30 million per year (equivalent to approximately 19% of Connacher’s standalone sustaining free cash flow at US$70 WTI), which it expects to be able to realize by the end of 2026.

Pro forma the Acquisition, Greenfire will have expected 2026 production of approximately 34,000 Bbl/d (100% oil) with proved plus probable reserves of 850 MMBbl (equating to a reserves life index of approximately 68 years), with a long-term plan to increase production to approximately 65,000 Bbl/d.

Subject to customary closing conditions and receipt of customary required approvals, the transaction is expected to close in August 2026.

Click here for full announcement

Source: Greenfire Resources