Whitecap Resources Inc. (TO: WCP) completed its purchase of strategic light oil assets in Western Canada, including its Pembina Cardium/West Central core area, from Calgary's Imperial Oil Ltd. for C$678 million, the company announced on May 1.
The acquisition adds a concentrated land and operating base with high netback production of 6,500 barrels of oil equivalent per day (boe/d), which is 83% oil and NGL. The properties, located in British Columbia and Alberta, have a low base decline rate of 16% and significant low risk oil reserves upside.
Additionally, Whitecap, also based in Calgary, announced the concurrent disposition of certain Nisku natural gas production and related facilities located within the Pembina area in west central Alberta to Keyera Corp. (TO: KEY) closed on May 1 for $113 million.
The acquisition was partially funded through a bought deal public financing through a syndicate of underwriters co-led by National Bank Financial Inc. and TD Securities Inc. and including GMP Securities LP, Dundee Securities Inc., RBC Capital Markets, Scotia Capital Inc., CIBC World Markets, FirstEnergy Capital Corp., Macquarie Capital Markets Canada Ltd., Peters & Co. Ltd., Raymond James Ltd. and Cormark Securities Inc., which closed on April 8.
Pro forma the acquisition, Whitecap will have production of 33,500 boe/d with 72% oil and NGL.
Recommended Reading
E&P Highlights: Nov. 7, 2023
2023-11-06 - From another postponement of the Gulf of Mexico’s Lease Sale 261 to new contract awards, below is a compilation of the latest headlines in the E&P space.
E&P Highlights: Sept. 25, 2023
2023-09-25 - Here’s a roundup of the latest E&P headlines, including field development milestones and new contract awards.
CGX, Frontera Find Oil with Wei-1 Well Offshore Guyana
2023-11-10 - Partners have tapped the SIA joint venture to create a conceptual subsea development to produce the oil.
DNO, OMV Find Gas Offshore Norway
2023-09-27 - Norma, Velocette wells to be further evaluated by the DNO and OMV.
E&P Highlights: Oct. 9, 2023
2023-10-09 - Here’s a roundup of the latest E&P headlines, including go-ahead for production at Tommeliten A and decommissioning at Dunlin Alpha, along with new contract awards.