Aurora Oil & Gas: Court Approves Scheme Of Arrangement For Acquisition By Baytex

(RTTNews) - Australia's Aurora Oil & Gas Ltd. (AEF.TO, AOG), which is in deal to be acquired by Canadian crude oil producer Baytex Energy Corp. (BTE.TO, BTE), Monday said the Federal Court of Australia has made orders approving the scheme of arrangement for the acquisition.

It was in early February that Aurora agreed for the deal, under which Baytex's unit Baytex Energy Australia Pty Ltd will make the acquisition. On May 21, Aurora shareholders approved the agreement for Aurora to be acquired by Baytex for A$4.20 per share in cash. The total purchase price is estimated at C$2.8 billion, including the assumption of approximately C$0.9 billion of indebtedness.

Aurora now said it expects trading in its shares on ASX to be suspended from close of trading tomorrow, and on the Toronto Stock Exchange immediately prior to the opening of trading on May 27, to ensure suspension is effected concurrently on both exchanges. The arrangement is expected to be closing in the first half of June.

Baytex earlier had said that the acquisition is accretive to its funds from operations while maintaining a strong balance sheet. With the deal, Baytex would get premier acreage in the core of the liquids-rich Eagle Ford. Aurora's first quarter 2014 gross production was 28,671 boe/d of predominantly light, high-quality crude oil.