The Globe and Mail reports in its Wednesday edition that Tamarack Valley Energy and Headwater Exploration are joining up in a $10-billion all-stock deal that they say will create an oil-producing heavyweight in the Clearwater region of Northern Alberta. A Canadian Press dispatch to The Globe says that under the proposed deal, Headwater shareholders will receive one share of Tamarack for each Headwater share they hold. Tamarack shareholders will own 66.5 per cent of the combined company, while Headwater shareholders will own 33.5 per cent. In the new year, Tamarack president Steve Buytels will take the helm of the merged company and its chief executive officer, Brian Schmidt, is to move into the executive chairman role. The deal requires approval by both companies' shareholders. In connection with the transaction, Tamarack says it plans to increase its quarterly dividend to six cents a share from five cents. Some non-core exploration assets in Alberta, Saskatchewan and New Brunswick will be transferred into Tributary Exploration Inc., a new company that is expected to be publicly listed and be operated by Headwater management. Desjardins analyst Robert Mann said in a note Tuesday that the deal makes strategic sense.