Nova

Strength in numbers emerged Monday as a survival strategy for depressed fossil fuel prices and the Covid-19 pandemic among independent Canadian oil and gas firms as announcements of a merger and a proposal for a second pairing were made.

Whitecap Resources Inc. and NAL Resources Ltd. made a corporate marriage deal valued at C$155 million ($116 million), while Obsidian Energy Ltd. posted an offer to discuss terms for a combination with Bonterra Energy Corp.

“Whitecap’s increased scale and financial strength is expected to enhance its credit profile and reduce its cost of capital,” said the announcement of the arrangement with NAL.

“Both equity and debt capital markets have been sending a clear signal for over two years that they are no longer supportive of small to...