2009-08-11-2007-09-01-2007-10-01

Transaction Type
Sellers
Buyers
Announce Date
Post Date
Close Date
Estimated Price
CA$244.0MM
Description

Bought co., gaining 80% average WI and 157,276 undeveloped net acres. Production 4,600 BOE/d (85% gas), proved 7.2 MMBOE (93% PP) and PPP 10.3 MMBOE.

NAL Oil & Gas Trust, Calgary, (Toronto: NAE-UN) has closed its acquisition of Seneca Energy Canada Inc. from Seneca Resources Corp., the E&P unit of National Fuel Gas Co., Williamsville, N.Y., (NYSE: NFG) for C$244 million (US$231.8 million). The deal values the production at C$49,220 per flowing barrel of oil equivalent and proved and probable reserves at C$20.94 per barrel equivalent, according to NAL. Seneca Energy Canada has assets in eastern Alberta, western Alberta, northeastern British Columbian and Saskatchewan. It has a more than 80% average working interest in eastern Alberta, and operates 89% of its production in the area. Total undeveloped land is 157,276 net acres. Talisman Energy Corp., Calgary, (Toronto, NYSE: TLM) operates Seneca Energy Canada's northeastern British Columbia properties. Production is approximately 4,600 barrels equivalent per day (85% gas) primarily concentrated in east-central Alberta and northeastern British Columbia. Proved reserves are 7.2 million barrels equivalent (93% proved producing) and proved and probable reserves are 10.3 million barrels equivalent. NAL now has 132,915 net undeveloped acres and production of up to 20,800 barrels equivalent per day. NAL president and chief executive Andrew Wiswell says, "The purchase of Seneca complements our strong production base by adding opportunities that provide significant potential for consistent growth in production and reserves over the next few years, while adding some high-impact prospects. This acquisition builds on our strong first-half performance, and represents the start of our repositioning to create an attractive, sustainable entity post-2010." National Fuel Gas chairman and chief executive Philip C. Ackerman says, "After determining that the (Canadian) properties were no longer a strategic fit for Seneca's operations, the next task was to divest those holdings in a fashion that would protect shareholder value. We believe that this sale accomplishes that goal and look forward to focusing on Seneca's properties in the Gulf of Mexico, Appalachia and California in order to maximize their potential for growth and development." NAL plans to fund the deal with a combination of new equity, convertible subordinated debentures and bank debt. Scotia Waterous was financial advisor to Seneca Resources and marketed the assets.