Tamarack Valley and Headwater Exploration to merge

Canadian oil producers Tamarack Valley and Headwater Exploration will merge in an all-stock deal valued at $10 billion, the companies said on Tuesday. The deal would create the largest publicly traded oil producer focused on Alberta’s Clearwater Formation, with the combined core land position across Marten Hills, Nipisi and Marten Hills West. Headwater shareholders will receive one Tamarack share for each share held, with Tamarack issuing about 237.8 million shares. Tamarack shareholders will own 66.5 per cent of the combined company, while Headwater shareholders will own 33.5 per cent. In connection with the transaction, Tamarack plans to increase its quarterly dividend by 20 per cent to $0.06 per share, President Steve Buytels said. Buytels added that the company’s five-year plan now includes Clearwater growth of 10 to 12 per cent, up from 8 to 10 per cent prior to the transaction.