Greenfire Strikes C$1.27bn Connacher Deal to Double Oil Sands Output

Greenfire Resources has agreed to acquire privately held Connacher Oil and Gas for approximately C$1.27 billion in cash, creating a larger Canadian oil-sands producer with expected 2026 output of about 34,000 barrels per day.

Greenfire Resources Ltd said it will buy Connacher Oil and Gas Limited for around C$1.27 billion, equivalent to about US$900 million. Connacher owns and operates the Great Divide thermal oil-sands project and is expected to produce approximately 19,500 barrels per day in 2026.

The enlarged group is expected to hold combined proved and probable reserves of about 850 million barrels. Greenfire said its longer-term plan is to increase combined production to approximately 65,000 barrels per day.

The acquisition will be funded through debt and equity, including about C$700 million drawn from an enlarged C$1.0 billion reserve-based loan and a C$575 million bridge facility. Waterous Energy Fund has committed to backstop a planned rights offering intended to repay the bridge financing.

Greenfire expects annual synergies of around C$30 million from midstream, marketing, operating-cost and corporate savings by the end of 2026. Completion is targeted for August 2026.

Why it matters

The transaction would roughly double Greenfire’s production base and materially increase its reserves, giving the company greater scale in Canada’s thermal oil-sands sector. The financing structure, integration timetable and delivery of the projected C$30 million of annual synergies will be central to investor assessment of the deal.

Company and ticker: Greenfire Resources Ltd (TSX: GFR); Connacher Oil and Gas Limited (private)

Sector: Oil & Gas

UK release time: 13 July 2026, 15:00 BST

Sources: Reuters; Greenfire Resources company announcement.