Emerge Oil & Gas Adds Heavy Oil Assets To Lloydminster, SK Portfolio

Transaction Type
Sellers
Buyers
Announce Date
Post Date
Estimated Price
10MM
Description

To acquire oil assets in Lloydminster, SK, gaining 400 BOE/d.

Emerge Oil & Gas Inc., Calgary, (Toronto: EME) plans to acquire heavy oil assets in the Lloydminster area of west-central Saskatchewan from an unnamed Calgary-based company for C$10.3 million.

The acquisition adds three contiguous properties to Emerge's oil portfolio: Ear Lake, Reward and Reward North, which have proved plus probable reserves of 550,000 barrels of oil equivalent and a reserve life index of 3.8 years. The acquisition cost per proved plus probable barrel is C$16.38.

Estimated production from the properties is 400 barrels of oil equivalent per day (86% oil).

The assets contain between 25 and 52 drilling locations and 15,400 net acres of undeveloped land. The properties are nearly 100% working-interest-owned and operated.

The deal is expected to close by June 18.