Anterra Energy To Purchase Nipisi Property For $12 Million

To purchase properties in the Nipisi area of north central Alberta producing 400 BOE/d.

Anterra Energy Inc. (OTC: ATERF; TSXV: AE-A) entered an arm's length property acquisition in the Nipisi area of north central Alberta for $12.1 million in cash.

The company entered into a purchase and sale agreement on Nov. 26 for the acquisition of producing oil properties in the Nipisi area of north central Alberta. The proposed acquisition is comprised of an 88% working interest in 5,920 gross developed acres of land, including infrastructure and 17 producing oil wells, producing 400 barrels of oil equivalent per day (BOE/d) with 94% light oil net to the company.

Anterra intends to fund the acquisition with cash on hand and existing credit facilities. The vendor is a publicly-traded intermediate Canadian producer of oil and natural gas. The acquisition is effective as of Aug. 1 and is expected to close on or before Dec. 20.

"This acquisition is consistent with our objective to build our production and reserve base in Western Canada and will almost double our current production," Dr. Gang Fang, Anterra CEO, said in the release. "Looking ahead, we continue to evaluate opportunities to further expand our asset base, increase our production and add to our inventory of development opportunities."

In addition to stable low decline production, the Nipisi property provides Anterra with development opportunities through modification of the existing waterflood program and potentially following-up on an encouraging microbial enhanced oil recovery pilot scheme initiated by the vendor.

Anterra Energy Inc. engages in the exploration, development, and production of oil and natural gas properties in Canada. The company is headquartered in Calgary.