Strathcona, financed by private equity, buys Caltex and Tucker assets

Strathcona Resources Ltd, a Canadian oil and gas company, said on Monday that it has purchased rival Caltex Resources Ltd, which is planning to expand its oil-recovery portfolio in Saskatchewan.

Oil and gas firms across North America have built their assets in order to capitalize on strong global crude prices, up nearly 45% this year, as demand outstripped supply even before Ukraine's invasion by Russia, a major oil exporter.

Strathcona purchased Caltex for an estimated C$665 million, according to an industry source with knowledge of Canadian energy asset values. Strathcona and Caltex have not disclosed the value of the deal.

Strathcona said in January that it had purchased Alberta's Tucker thermal oil field assets through a company called Stickney Resources Ltd.

Strathcona did not reveal the seller, but Cenovus Energy Inc said in December that it had agreed to sell its Tucker thermal assets in northeastern Alberta to an unidentified buyer for C$800 million.

Strathcona, which produces 80,000 barrels of oil equivalent per day, said the agreements have reduced its production to around 110,000 billion barrels.

The owner of the waterous energy fund made the transactions.

Strathcona was in advanced negotiations to purchase Caltex for around C$700 million in September last year, according to Reuters. (548.89 million).

Caltex is developing enhanced oil recovery (EOR), a method of production that injects polymers or carbon into the ground to extract hard-to-reach oil, prolonging the life of oilfields.

Strathcona, which was formed last year by the merger of two Waterous-backed businesses, has also expanded its oil recovery in Saskatchewan.