CALGARY — — Italian oil firm ENI S.p.A. has agreed to takeover First Calgary Petroleums Ltd. in a $923-million cash deal, bringing the Calgary-based company's turbulent recent history to a close.

First Calgary doesn't produce any oil or gas at present, but is developing a promising natural gas field in Algeria. However, the firm has struggled to advance the project during the global credit crunch, leading to investors pressing for the firm to sell itself to a company with deeper pockets.

ENI will pay $3.60 per First Calgary share, a 59.2 per cent premium to the stock's 30-day weighted average. The deal, which requires the support of two-thirds of First Calgary shareholders, is expected to close by the end of 2008.

“This transaction… delivers the highest value for [First Calgary] shareholders compared with other strategic options,” said First Calgary chief executive Shane O'Leary in a statement. “The resources and expertise that ENI can bring to this project should accelerate the development.”