The aggregate cash consideration for the acquisition (net of estimated positive working capital at closing) is approximately $40.9m, which will be funded by drawing on Baytex’s revolving credit facility. The acquisition, which is subject to certain conditions, including shareholder approval and the receipt of all required regulatory and court approvals, is expected to close in late-May 2010.

Production from the acquired assets is approximately 900 barrels of oil per day. Baytex is also acquiring approximately 32,100 net acres of undeveloped land. The acquired assets provide several cold heavy oil development opportunities and can be integrated into Baytex’s existing producing infrastructure in the Lloydminster area, the company said.

According to the company, the acquisition does not materially affect its current production mix, which is approximately 80% oil. The company’s capital budget for exploration and development activities for 2010 will remain unchanged at $235m, as minor amounts of capital will be redirected toward the acquired assets. The acquisition is estimated to be 2% accretive to funds from operations and production on a per unit basis.