Chinook Energy Inc. entered into an agreement to sell certain assets in the Gold Creek area of Alberta for about CA$7.5 million, the company said May 25.
The disposition is scheduled to close June 30 subject to customary closing adjustments. Pipelines and production facilities related to 20 sections of land, and a 75% working interest in those sections, are being divested.
On Dec. 31, 2015, Chinook had 98.6 thousand barrels of oil equivalent (Mboe) of total proved reserves, and 137.8 Mboe of total proved plus probable reserves, respectively, associated with these properties. Their values are about CA$0.7 million and CA$0.9 million using forecast pricing at a 10% discount.
The assets produced 23 boe/d-- 38% natural gas and 62% oil and NGL—on average in the first quarter of 2016.
The divestment will minimally impact the flow of funds, Chinook said.
When the sale is complete, the company will have 24.5 sections (16.5 net) and 35 sections (20.5 net) of Montney lands at Gold Creek and Knopcik, respectively, and will retain ownership of the two (1.13 net) horizontal Montney wells it drilled at Gold Creek in 2014.
Chinook Energy Inc. is based in Calgary, Alberta.
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