(EnergyAsia, October 11 2011, Tuesday) — China’s largest oil and gas producer, Sinopec Group, has offered to fully acquire Canadian upstream company Daylight Energy Ltd for C$2.2-billion. (US$1=C$1.05).

Subsidiary Sinopec International Petroleum Exploration is offering to pay C$10.08 per common share of Daylight for a 43.6% premium over the Calgary-based company’s 60-day average share price.

Daylight, an intermediate oil and gas producer that operates outside of Alberta’s oil sands patch, has been accumulating shale assets, paying C$100 million for a stake in the province’s Duvernay acreage in August. The company, which produces around 38,000 b/d of oil equivalent per day, also owns land in Alberta’s Pembina acreage.

The proposed takeover is subject to customary conditions including court and regulatory approvals, and the approval of two-thirds of Daylight shareholders.

Daylight chief executive Anthony Lambert said:

“We believe this transaction with SIPC recognises the highly attractive asset portfolio and exceptional team that we have assembled at Daylight. The efforts and accomplishments of this team will be built upon through increased investment in the business and acceleration of our development and exploration opportunities.

In a statement, Daylight said its board has unanimously approved the proposal and, after consulting with its financial and legal advisors, determined that the takeover is in the best interests of the company and its shareholders.