Tallgrass Buys Canadian Assets

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Purchased unspecified acreage in central Alberta producing about 450 boe/d.

Tallgrass Energy Corp. has closed on its purchase of acreage of producing Cardium light oil assets in Central Alberta from Anglo Canadian Oil Corp. (Toronto Venture: ACG) for $17 million.

This acquisition adds approximately 450 boe/d to Tallgrass’ production base, about 73% of which is light oil and NGLs.

An independent engineering report states the property has 2P reserves 2.1 million barrels of oil equivalent (BOE).
The acquisition was funded through its revolving credit facility, a bridge loan for $6 million and a previously announced $2 million loan from Anglo. Tallgrass has previously announced its intent to undertake a $20 million equity financing, the funds from which will be used to strengthen its balance sheet and execute its Cardium strategy.

Anglo Canadian Corp. is a Calgary-based oil & gas Co. Tallgras is a privately-held upstream oil & gas company whose primary focus is in east central Alberta, where it has over 10,880 net acres and first half 2012 production of about 150 BOE per day. The Cardium acquisition adds 450 BOE/d to that total.