​East River granted permission to purchase insolvent Connacher Oil and Gas

Connacher's Algar SAGD project. Image: Connacher Oil and Gas

Connacher Oil and Gas has been given the green light by its creditors and the Court of Queen’s Bench of Alberta to proceed with a sale to East River Oil and Gas.

The junior oilsands producer has been operating under creditor protection since May 2016.

East River’s proposed $113.5 million acquisition of Connacher and its two SAGD projects was announced in August.

Consummation of the deal is expected in November, Connacher said on Oct. 4.

The company’s Great Divide and Algar SAGD projects produced 12,593 bbls/d in the second quarter of 2018.