Deltastream’s Marten Hills Bet Gives Backers $1.4 Billion Return

Deltastream Energy Corp.’s gamble six years ago on drilling for oil in a heavily forested area of northern Alberta with no pipeline links paid off with a C$1.8 billion ($1.4 billion) return for investors, according to its chief executive officer.

The closely held company, 85% owned by Arc Financial Corp., began drilling for heavy oil in the Clearwater shale formation in and around the Marten Hills area north of Edmonton in 2016, investing about C$120 million, CEO Roger Tang said in a phone interview. On Monday, Deltastream agreed to sell itself to Tamarack Valley Energy Ltd. for about ...