Canadian oil and gas exploration entity Zargon Energy Trust has agreed to acquire all of the outstanding common shares of Rival Energy.

Pursuant to the agreement, Zargon will acquire all of the fully-diluted Rival common shares at a price of C$1.35 per share, valuing the proposed transaction at approximately C$47 million, including the assumption of approximately C$14.2 million of net debt (net of option proceeds, adjustments and transaction costs).

Rival is currently producing approximately 1,000 barrels of oil equivalent per day, which consists of 650 barrels per day of crude oil and 2.10 million cubic feet per day of natural gas. Approximately 60% of Rival’s current production is from the operated Bellshill Lake oil property, which is located within Zargon’s Alberta Plains core area, just south of Jarrow.