Greenfire Resources will pay approximately $1.277 billion in cash, net of closing adjustments, for all the issued and outstanding shares of Connacher Oil and Gas, a private thermal oil sands company. The deal gives Greenfire full ownership of Connacher's Great Divide oil sands project, which Connacher operates with a 100% interest.
The asset
Great Divide is expected to produce approximately 19,500 barrels a day of oil in 2026, at a steam-oil-ratio of about 3.0x, the amount of steam a thermal oil sands operation injects into the ground for every barrel of oil it recovers. The project holds proved plus probable reserves of about 441 million barrels, giving it a reserves life index of 62 years, a measure of how long those reserves would last at the current rate of production.
Why Greenfire wants it
Great Divide sits directly next to Greenfire's existing Hangingstone asset, and Greenfire said the adjacency will let it develop the combined acreage more efficiently. Greenfire has identified about $30 million a year in midstream, marketing, operating cost and G&A synergies from combining the two assets, equal to roughly 19% of Connacher's standalone sustaining free cash flow at $70 WTI. Greenfire expects to capture those synergies by the end of 2026.
Scale after the deal
Combined with Connacher, Greenfire expects 2026 production of about 34,000 barrels a day, all oil, with proved plus probable reserves of 850 million barrels, a reserves life index of about 68 years. Greenfire's long-term plan calls for raising production to about 65,000 barrels a day.
Timeline
The transaction is subject to customary closing conditions and receipt of customary required approvals. Greenfire and Connacher expect it to close in August 2026.
