CALGARY — Canadian Natural Resources Ltd. (CNRL) says it has reached a deal to acquire Calgary-based oil and gas explorer Storm Resources Ltd. for $6.28 per share, a price that pegs Storm's enterprise value at $960 million.

The purchase price represents an all-time high share price for Storm, as well as a premium of 10 per cent to Storm's 10-day volume-weighted average trading price on the Toronto Stock Exchange as of the close of markets on Tuesday.

The deal will give CNRL access to Storm's existing production and infrastructure in the Montney area of northeast British Columbia, where CNRL already has operations.

CNRL says Storm's current production in the area is approximately 136 million cubic feet per day of natural gas and 5,600 barrels per day of natural gas liquids.

As part of the proposed deal, CNRL will assume Storm's total debt of approximately $186 million. The deal is expected to close in December.

In August 2020, CNRL acquired another Montney producer, Painted Pony Energy Ltd., for $469 million.

This report by The Canadian Press was first published Nov. 10, 2021.

Companies in this story: (TSX:CNQ, TSK:SRX)

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