Waldron Energy Corp. entered an agreement to sell the Strachan and Ricinus properties for CA$12.3 million, as a first step in an asset disposition plan. The sale is scheduled to close May 5 on customary conditions, the company said May 4.
Cormark Securities Inc. was engaged as financial adviser in the sale. The assets could be sold in one transaction or several, or in a merger or the outright sale of Waldron, the company added. Any combination of these options is also possible.
Selling Strachan and Ricinus will reduce total debts, Waldron added..
The Ricinus and Strachan properties produce about 510 barrels of oil equivalent per day (boe/d), about 18% oil and NGL and 82% natural gas. The sales price is about CA$24,118 per flowing boe.
Additionally, assuming realized natural gas sales are priced at CA$3 per thousand cubic feet (Mcf) and realized NGL sales are priced at $25/bbl, the estimated cash flow is about CA$1.35 million.
Based on the results from its annual independent reserve evaluation completed by GLJ Petroleum Consultants on Dec. 31, 2014, Ricinus and Strachan have 1,574 Mboe and 3,203 Mboe in proved and probable reserves, respectively.
Waldron’s remaining Ferrybank, Crystal and Sullivan Lake properties produce about 800 boe/d to 850 boe/d, about 35% oil and NGL and 65% natural gas.
Waldron’s senior lender will adjust the credit facility limit to CA$7.8 million on the sale’s closing. Total credit facilities of CA$13.8 million will result from the combination with the CA$6 million senior subordinated debenture.
At the end of April, about CA$12.3 million would be drawn on the credit facilities, after the net proceeds from the Ricinus Strachan sale were applied.
Calgary, Alberta-based Waldron develops and produces Alberta Deep Basin petroleum and natural gas.
Recommended Reading
EOG: Utica Oil Can ‘Compete with the Best Plays in America’
2024-05-06 - Oil per lateral foot in the Utica is as good as top Permian wells, EOG Resources told analysts May 3 as the company is taking the play to three-mile laterals and longer.
E&P Highlights: May 6, 2024
2024-05-06 - Here’s a roundup of the latest E&P headlines, including technology milestones and new contract awards.
US Oil, Gas Rig Count Falls to Lowest Since January 2022
2024-05-03 - The oil and gas rig count, an early indicator of future output, fell by eight to 605 in the week to May 3, in the biggest weekly decline since September 2023.
Pemex Reports Lower 2Q Production, Net Income
2024-05-03 - Mexico’s Pemex reported both lower oil and gas production and a 91% drop in net income in first-quarter 2024, but the company also reduced its total debt to $101.5 billion, executives said during an earnings webcast with analysts.
Chouest Acquires ROV Company ROVOP to Expand Subsea Capabilities
2024-05-02 - With the acquisition of ROVOP, Chouest will have a fleet of more than 100 ROVs.