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Westgate Energy Inc. is buying Mannville Stack-focused assets in Alberta for CA$7 million (US$4.85 million) from an undisclosed private oil and gas company, Westgate said March 10.
The acquisition increases Westgate’s Mannville Stack holdings by 240% with 3,712 hectares of primarily contiguous mineral rights and 58 bbl/d of oil. The company has identified 57 multi-lateral horizontal well locations across the property across three stacked oil bearing Mannville zones.
The well locations complement Westgate’s 40 unbooked locations in the Cold Lake area.
The acquired assets have minimal asset retirement obligations and only one producing well, Westgate said.
The agreement required a CA$700,000 deposit to the seller. The company closed a non-brokered private placement offering of 700 Westgate units to Art Agolli, a director of the company, at a price of $1,000 per private placement unit to fund the deposit.
Westgate entered into the purchase and sale agreement on March 7. The deal is expected to close in June and remains subject to customary closing conditions.
Westgate also secured a senior secured loan from a Texas-based private credit investment group, also unnamed, for US$25 million. The funds will be used to drill on the company’s existing and newly acquired lands.
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