SUBSCRIBE
PROFILE

Strathcona Resources seeks to raise its stake in MEG Energy to 14.2%

Strathcona Resources plans to acquire an additional 5% of MEG Energy’s shares and confirms its opposition to the company’s sale to Cenovus Energy.

Share:

Gain full professional access to energynews.pro from 4.90€/month.
Designed for decision-makers, with no long-term commitment.

Over 30,000 articles published since 2021.
150 new market analyses every week to decode global energy trends.

Monthly Digital PRO PASS

Immediate Access
4.90€/month*

No commitment – cancel anytime, activation in 2 minutes.

START NOW — 4.90€/month

*Special launch offer: 1st month at the indicated price, then 14.90 €/month, no long-term commitment.

Annual Digital PRO Pass

Full Annual Access
99€/year*

To access all of energynews.pro without any limits

SUBSCRIBE — 99€/year

*Introductory annual price for year one, automatically renewed at 149.00 €/year from the second year.

Sign up for free to unlock this article

Strathcona Resources Ltd. announced its intention to increase its stake in MEG Energy Corp. from 9.2% to approximately 14.2%, subject to market conditions. The transaction will be carried out in compliance with Canadian securities laws. Shares will be purchased on the market as opportunities arise.

The company currently holds 23.4 million common shares of MEG Energy, representing about 9.2% of the issued and outstanding shares. Under the applicable regulatory framework, Strathcona is permitted to acquire up to an additional 5% while its tender offer remains active. This initiative marks a reinforcement of its strategy toward a stronger position in MEG Energy.

Declared opposition to Cenovus Energy’s acquisition

Strathcona Resources also announced that it would vote against the resolution to approve the acquisition of MEG Energy by Cenovus Energy Inc. This decision applies both to the shares it already holds and those it may acquire. Approval of the transaction requires at least 66 2/3% of the votes cast by MEG shareholders present or represented by proxy at the special meeting scheduled for October 9.

Discussions with other MEG shareholders preceded this stance. Strathcona’s strategy signals increasing tension among stakeholders over MEG Energy’s future. No details were provided regarding a possible competing offer or changes to the existing terms.

Acquisition terms and regulatory obligations

Strathcona specified that the purchase price of MEG shares could differ from the valuation included in its current offer, which proposes 0.62 of a Strathcona share and $4.10 in cash per MEG share. Acquisitions will proceed as soon as possible, depending on market conditions and the applicable legal frameworks.

The company will be required to issue a news release at the close of each trading day on which shares are purchased, disclosing the number of MEG shares acquired and other information mandated by Canadian and United States securities laws. This process ensures full transparency regarding the operations carried out in this capital increase.

  • Popular on energynews.pro
Argentina puts 44% of Nucleo Electrica SA’s capital up for sale as part of its reform
Ukraine seeks $1bn to secure gas reserves ahead of winter
Poland urges European Union to end Russian oil imports by 2026
Morgan Stanley merges energy and utilities teams into new global group
US crude oil stocks rise by 3.9 million barrels
Uganda builds 2 million barrels of storage to boost oil sector
Backed by flagship projects linked to EACOP and the Tilenga and Kingfisher fields, Uganda aims to lead Africa in new oil storage additions, with a projected impact on its revenues and financial flows by 2030.
Independent producers generated $563bn in US GDP in 2024
A study reveals that independent oil and gas producers supported over 3.1 million jobs and generated $129bn in taxes, representing 87% of the US upstream sector’s economic contributions.
GATE Energy awarded commissioning contract for bp’s Kaskida offshore project
GATE Energy has been appointed to deliver full commissioning services for bp’s Kaskida floating production unit, developed in partnership with Seatrium in the deepwater Gulf of Mexico.
Syrian tanker docks in Trieste, first crude delivery in 14 years
A Syrian vessel carrying 640,000 barrels of crude has docked in Italy, marking the country’s first oil shipment since the civil war began in 2011, amid partial easing of US sanctions.
Canadian exports to China rise on back of expanded TMX pipeline
Canadian crude shipments from the Pacific Coast reached 13.7 million barrels in August, driven by a notable increase in deliveries to China and a drop in flows to the US Gulf Coast.
Oil and gas to remain dominant in global energy mix through 2050
Faced with rising global electricity demand, energy sector leaders are backing an "all-of-the-above" strategy, with oil and gas still expected to supply 50% of global needs by 2050.
UK sanctions 70 tankers to reinforce Russian oil price cap
London has expanded its sanctions against Russia by blacklisting 70 new tankers, striking at the core of Moscow's energy exports and budget revenues.
Iraq and Oman in talks to build new oil pipeline to secure exports to Asia
Iraq is negotiating with Oman to build a pipeline linking Basrah to Omani shores to reduce its dependence on the Strait of Hormuz and stabilise crude exports to Asia.
Vallourec signs $1bn contract with Petrobras for Brazilian offshore operations
French steel tube manufacturer Vallourec has secured a strategic agreement with Petrobras, covering complete offshore well solutions from 2026 to 2029.
IEA warns of 3.3 million barrel oil surplus in 2026
Increased output from Opec+ and non-member producers is expected to create a global oil surplus as early as 2025, putting pressure on crude prices, according to the International Energy Agency.
Petrobras takes 27.5% stake in Block 4 offshore São Tomé with Shell and Galp
The Brazilian company expands its African footprint with a new offshore exploration stake, partnering with Shell and Galp to develop São Tomé and Príncipe’s Block 4.
Drone strikes major Bachneft refinery in Ufa, fire breaks out
A drone attack on a Bachneft oil facility in Ufa sparked a fire with no casualties, temporarily disrupting activity at one of Russia’s largest refineries.
Transatlantic rift over Russian oil reduces Indian volumes in October
The divide between the United States and the European Union over regulations on Russian oil exports to India is causing a drop in scheduled deliveries, as negotiation margins tighten between buyers and sellers.
Russia increases oil exports from western ports by 11% in September
Russia plans to ship 2.1 million barrels per day from its western ports in September, revising exports upward amid lower domestic demand following drone attacks on key refineries.
QatarEnergy secures offshore exploration licence in Congo
QatarEnergy obtained a 35% stake in the Nzombo block, located in deep waters off Congo, under a production sharing contract signed with the Congolese government.
Phillips 66 takes full control of two US refineries for $1.4bn
Phillips 66 acquires Cenovus Energy’s remaining 50% in WRB Refining, strengthening its US market position with two major sites totalling 495,000 barrels per day.
Union strike threatens fuel deliveries from Dangote refinery
Nigeria’s two main oil unions have halted loadings at the Dangote refinery, contesting the rollout of a private logistics fleet that could reshape the sector’s balance.
ReconAfrica secures offshore block in Gabon with production sharing contract
Reconnaissance Energy Africa Ltd. enters Gabonese offshore with a strategic contract on the Ngulu block, expanding its portfolio with immediate production potential and long-term development opportunities.
BW Energy raises $365mn for Maromba FPSO and secures drilling rig
BW Energy has finalised a $365mn financing for the conversion of the Maromba FPSO offshore Brazil and signed a short-term lease for a drilling rig with Minsheng Financial Leasing.
Vantage Drilling signs 260-day contract for the Platinum Explorer
Vantage Drilling has finalised a major commercial agreement for the deployment of the Platinum Explorer, with a 260-day offshore mission starting in Q1 2026.

Log in to read this article

You'll also have access to a selection of our best content.