CALGARY – Obsidian Energy Ltd. is extending its hostile takeover offer for Bonterra Energy Corp. and lowering the minimum tender condition for its bid.

The company says it has lowered the minimum tender condition to 50 per cent. It had earlier required two-thirds of Bonterra’s outstanding shares.

The offer has also been extended to Jan. 25 from an earlier deadline of Jan. 4.

Obsidian has offered two of its shares for each Bonterra share.

The Bonterra board has urged shareholders to reject the offer and said that shareholders holding more than 33 per cent of the company’s shares have confirmed that they will not tender to the hostile offer.

Bonterra shares closed at $1.82 on the Toronto Stock Exchange on Friday, while Obsidian shares closed at 88 cents.

This report by The Canadian Press was first published Dec. 21, 2020.

Companies in this story: (TSX:BNE, TSX:OBE)