Calgary-based Cequence will get Donnybrook's interests in properties in the Simonette and Resthaven areas of Alberta.
Current production at those properties is about 120 oil-equivalent barrels per day. They also have 720,000 oil-equivalent barrels of proven reserves, worth about $12 million.
Donnybrook will get Cequence's interest in properties in the Fir area and 10.3 million common shares, worth about $13.9 million as of Friday.
Cequence, which estimates the total value of the deal at $23 million, including asset swaps and stock, expects to benefit from consolidating its land position at Simonette area.
Donnybrook plans to distribute the Cequence stock to its shareholders.