French energy giant Total has increased its bid for Canadian oil sands producer Deer Creek Energy Ltd. by 24 per cent to $1.58 billion, through a subsidiary.
Deer Creek says its board has agreed to support the revised offer of $31 cash, up from $25, received under a previously announced agreement announced last month.
Total said last month that the acquisition was designed to boost Total's Canadian heavy oil output.
Total is the latest large international energy company to increase its presence in the northern Alberta oil sands region.
Total already has a stake in the oil sands, owning half of the $1.4-billion Surmont steam-assisted oil sands project currently being built by Houston-based ConocoPhillips.
Deer Creek's main asset is a stake in the Joslyn lease, located north of Fort McMurray, between lands held by Syncrude Canada and Canadian Natural Resources' $10-billion Horizon project, which is currently under construction.
Joslyn is estimated to contain about two billion barrels of recoverable bitumen.