Baytex To Buy Aurora Oil & Gas For C$2.6 Bln

(RTTNews) - Baytex Energy Corp. (BTE.TO, BTE) said Thursday that it has entered into an agreement to buy Aurora Oil & Gas Ltd. (AEF.TO, AUT.AX) for AU$4.10 cash per share.

The total consideration to be paid by Baytex is about C$1.8 billion, plus assumed debt of about C$744 million for a total deal value of about C$2.6 billion.

Aurora's primary asset is 22,200 net contiguous acres in the prolific Sugarkane Field located in South Texas in the core of the liquids-rich Eagle Ford shale. Aurora's fourth quarter 2013 gross production was 24,678 boe/d (82% liquids) of predominantly light, high-quality crude oil.

Baytex has committed to increase the monthly dividend on its common shares by 9% to C$0.24 from C$0.22 per share, subject to the completion of the acquisition. Based on the anticipated closing date of mid/late May, the dividend increase is expected to take effect for the dividend payable on or about July 15.

In conjunction with the acquisition, Baytex has entered into a $1.3 billion bought deal subscription receipt financing with a syndicate of underwriters co-led by Scotiabank and RBC Capital Markets, which is expected to close on or about February 24.