Greenfire Resources has agreed to acquire privately held Connacher Oil and Gas Limited for approximately $1.27 billion in cash.
The deal, announced on Monday, is expected to significantly expand the Calgary-based producer's operational footprint and production capacity.
On a combined basis, Greenfire's 2026 production is projected to reach about 34,000 barrels per day.
The acquisition represents a strategic push to consolidate assets in the region, allowing Greenfire to scale its upstream operations through a single, substantial transaction rather than incremental growth.
The move comes amid a broader trend of consolidation in the Canadian energy sector, where larger producers are increasingly targeting private or smaller public entities to secure reserves and optimize production costs.
By taking Connacher private, Greenfire avoids the regulatory scrutiny and shareholder approval processes often associated with public-to-public mergers, potentially accelerating the integration timeline.