Investing.com -- Whitecap Resources (OTC: SPGYF ) and Veren have finalized a business agreement to merge their companies.

The deal, valued at 15 billion Canadian dollars ($10.44 billion), is set to expand their oil and gas operations in Alberta.

Announced on Monday, the merger will create a more substantial light oil and condensate producer, with concentrated assets in Alberta’s Montney and Duvernay regions.

As part of the merger terms, Veren shareholders will receive 1.05 common shares of Whitecap for each share they hold. The transaction value, which includes debt, stands at C$15 billion.

Whitecap’s existing management team will oversee the newly-merged business. Four directors from Veren, including its CEO Craig Bryksa, will join the board of the combined entity.

The merger of the two companies is projected to yield a production of 370,000 barrels of oil equivalent per day. Around 63% of this production will be liquids from both unconventional and conventional assets.

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