Connacher Oil and Gas Ltd. says it has received an unsolicited takeover offer from an unnamed company after being asked by regulators to comment on unusual activity in trading of its stock.
The Calgary-based diversified oil and gas producer said in a statement Thursday that “it has received a confidential, non-binding, unsolicited proposal to acquire all of the outstanding shares of the company.”
Connacher has been on the hunt for a joint venture partner or sell down for its Great Divide oil sands project as well as a farm out or sell down of natural gas properties at Twining and Penhold in Alberta.
“The proposal is conditional upon, among other things, due diligence, negotiation of all definitive documentation and approval of the Board of Directors of Connacher and of the interested party.”
Shares in Connacher were halted earlier in the day. Before the halt, they had risen four cents to 65 cents.
Connacher, with a market value of around $291.4-million, last month moved to boost its cash holdings to $120.3-million through the sale of its Latornell properties and its shares of Gran Tierra Energy Inc. .
The diversified oil and gas producer had previously announced its intentions to sell the assets as it works to pay down its debt.