There can be only one

Petrobank and TriStar to Create a Premier Southeast Saskatchewan
Bakken and Light Oil Producer(.pdf)

"Petrobank Energy and Resources Ltd. (“Petrobank”) (TSX:PBG) and TriStar Oil & Gas Ltd. (“TriStar”) (TSX:TOG) are pleased to announce that their respective Boards of Directors have unanimously agreed to the strategic combination of TriStar and Petrobank’s Canadian Business Unit (the “Transaction”). The combination will create a new publicly listed company, PetroBakken Energy Ltd. (“PetroBakken” or the “Company”), that will be a premier, Bakken-focused, light oil exploration and production company..."

Consolidation in the Saskatchewan Bakken continues with a transaction that is only partly unexpected. I was expecting TOG to be bought by Crescent Point and finally CPG would swallow PBG.

Some of the details of the deal:

-"a TriStar shareholder will receive
$14.75 cash, or 0.5350 of a PetroBakken share, or a combination thereof, being approximately $3.75 per share in cash and 0.3989 of a PetroBakken share, for each share held"

-"PetroBakken plans to divest a package of Alberta-based assets
consisting of approximately 9,500 boepd (44% light oil, 56% natural gas), and 40.1 mmboe of proved plus probable reserves to further enhance the focus of PetroBakken on southeast Saskatchewan light oil resource plays. Proceeds from the disposition will be used to further solidify the strong PetroBakken balance sheet"

-"Based upon the underlying strength of PetroBakken’s high-netback light oil asset base and flexible balance sheet, PetroBakken intends to adopt a dividend policy initially targeting payments of $0.96 per share per annum, payable monthly"

Thoughts:

PBG is paying a 70% premium for TOG's equity.

PBG is selling gas to buy oil.

The implementation of a dividend is a bit of a surprise, and might indicate that Petrobank or Petrobakken is putting the heavy oil operations and THAI on the back burner as it is directing over a hundred million worth of annual cashflow out of the company.
EDIT: It seems that PBG is merging only the CBU with TOG, what exactly is going happen to the heavy oil projects isn't clear to me.

There can of course be more than one, but I think it's highly probable that there will eventually be only one major producer in the Canadian Bakken. CPG may buy PBG(the future PBN) or the other way around, it'll happen. May be sooner than later.