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A shale oil drilling rig in the Patagonian region of Argentina, home of the 7.4-million-acre Vaca Muerta shale field.
A shale oil drilling rig in the Patagonian region of Argentina, home of the 7.4-million-acre Vaca Muerta shale field.
(ENRIQUE MARCARIAN/REUTERS)

Madalena buys Argentina assets from Gran Tierra

Madalena Energy Inc., a junior oil explorer, is more than tripling its production by acquiring Gran Tierra Energy Inc.’s assets in Argentina for $63-million (U.S.) in cash and stock, a deal that it said will speed up its shale development in the country.

Along with the buy, Madalena is going to the market to issue $50-million in shares in a bought deal led by Dundee Securities Ltd., the latest in a slew of energy stock offerings in recent weeks. Dundee was also financial adviser for Madalena in the acquisition.