NEW YORK --Texas-based Athlon Energy awas surging in pre-market trading after reaching a deal to be acquired by Canadian natural gas producer Encana afor $5.93 billion in cash, or $58.50 a share, the companies announced on Monday. Athlon was climbing 25% in before-market trading while Encana was gaining 1.3%. The deal, which also includes Athlon's debt, brings the size of the acquisition to about $7.1 billion.aThe offer price of $58.50 is a premium of 25% to Athlon's closing price on Friday of $46.73.aThe acquisition will add Athlon's land position of abouta140,000 net acres in theaoil-rich Permian Basin in Texas. "This transformative acquisition further accelerates our strategy and provides us with a prime position in what is widely acknowledged as one of North America's top oil plays," said Doug Suttles, Encana president and CEO, in a statement on Monday. "The Athlon team has built an exceptional asset with massive running room that includes greater than 10 years of drilling inventory with up to 11 potential productive horizons of high-margin liquids."
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