Aurora Oil & Gas Limited's (ASX: AUT) shareholders appear set for a windfall after the energy company announced on Friday morning that Canadian-based Baytex Energy Corporation had lobbed a bid for the company at $4.10 per share which implies a market capitalisation of $1.84 billion.
The offer price represents a 56% premium to yesterday's closing price of $2.62 and will no doubt have investors asking if other oil and gas plays could attract similar valuations.
Foolish takeaway
While Aurora's focus is on shale gas in Texas, as a commodity product, the buy-out valuation of the company can be applied across the sector. Investors looking for exposure to the oil and gas sector might consider sharpening their pencils and seeking out stocks that could command a significant premium to their current price in the event of a takeover.
