Greenfire Resources to buy fellow heavy oil producer Connacher for $1.28 billion

A dump truck works near the Syncrude oil sands extraction facility near the city of Fort McMurray, Alberta on Sunday June 1, 2014. (THE CANADIAN PRESS/Jason Franson)

CALGARY — Greenfire Resources Ltd. has reached a deal to buy privately held heavy oil producer Connacher Oil and Gas Ltd. for $1.28 billion in cash.

Connacher's Great Divide oilsands operations are directly beside Greenfire's steam-driven Hangingstone property southwest of Fort McMurray, Alta.

Greenfire says it has identified annual cost savings and efficiencies of $30 million through the Connacher purchase.

It also says it knows the Connacher assets well, as some Greenfire executives have had past working experience with the target company.

The executive chairman of Greenfire is former investment banker Adam Waterous, who has the same role at another heavy oil company, Strathcona Resources Ltd.

Strathcona tried last year to grow its oilsands footprint through a hostile bid for MEG Energy, which ultimately ended up being sold to Cenovus Energy Inc. for $8.6 billion in a friendly deal.

This report by The Canadian Press was first published July 13, 2026.

Companies in this story: (TSX:GFR) (TSX:SCR) (TSX:CVE)

Lauren Krugel, The Canadian Press