Asim Ghosh, president and CEO of Husky Energy, addresses shareholders at the company's annual general meeting in Calgary, April 26, 2012.Todd Korol/Reuters
Whitecap Resources Ltd. is paying $595-million for a package of southwestern Saskatchewan oil assets from Husky Energy Inc., the latest in a series of deals it has down through the energy-sector downturn.
Whitecap also said it will issue $470-million shares to finance the deal, the latest of several sales by Husky.
Under the deal, Whitecap will pick up production of 11,600 barrels of oil a day on lands that come with further development opportunities, it said.
Husky chief executive Asim Ghosh said the sales will help to make the company more efficient as it focuses on fewer plays.
In recent weeks, the company, controlled by Hong Kong billionaire Li Ka-shing, agreed to sell royalty interests in oil and gas properties to Freehold Royalties Ltd. for $163-million.
Husky also sold oil and gas processing assets near Lloydminster for $1.7-billion to Hong Kong-based Cheung Kong Infrastructure Holdings and Power Assets Holdings Ltd. Husky held on to a 35-per-cent stake in the facilities, which include about 1,900 kilometres of pipeline. Lloydminster straddles the Alberta and Saskatchewan border, east of Edmonton.
Whitecap said it plans to issue 51 million subscription receives for $9.20 each in an offering led by National Bank Financial And TD Securities Inc.