Canadian Natural Resources Ltd. has made a cash and share deal with an oil and gas royalty business spun out of Encana. PrairieSky Royalty Ltd. will pay $1.8 billion to buy royalty assets from CNRL.
The deal means PrairieSky will be paying $680 Million in cash and roughly $4.4 million in shares. The assets sold include 5.4 million acres of royalty lands throughout western Canada- 81 per cent of CNRL’s royalty portfolio. The $680 million dollars from the deal is expected to help pay down the debts of the company that is one of the largest independent petroleum producers in Canada.
The deal came less than a week after CNRL president Steve Laut said there was no rush to sell off the company’s portfolio of royalty lands.