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
Exclusive: Adkins on Challenged Gas Prices, Growing Crude Demand
2024-05-15 - J. Marshall Adkins, head of energy investment banking at Raymond James, details the future of natural gas prices and misconceptions about crude demand coming to an end in this Hart Energy Exclusive interview.
CoolCo, GAIL Enter Long-term LNG Agreement
2024-05-16 - CoolCo and GAIL’s agreement is intended to secure long-term LNG supply in India’s market, with GAIL having an option to extend the 14-year agreement by another two years.
ConocoPhillips Looks to Scale Portfolio, But Citgo Auction Not a Factor
2024-05-15 - ConocoPhillips has a long-term ambition to boost its LNG offtake capacity to between 10 mtpa to 15 mtpa as it keeps a short-term eye on the auction of Citgo Petroleum.
Linde Doubles Production Capacity at Gulf Coast Facility
2024-05-14 - Linde’s expansion of the production capacity at its air separation facility in La Porte, Texas, will help meet growing demand for industrial gases in the area.
Gas Prices in a Summer of Discontent
2024-05-14 - In February, natural gas prices dropped below $2/MMBtu and stayed there. How is the market handling it, and when will the price pick back up?