Based on its agreement to sell some Alberta Deep Basin petroleum and natural gas assets, Crew Energy Inc. (TO: CR.TO) will increase its capital program to $285 million, up from $39 million, the company said April 9.

The increased capital will go toward increasing the Montney well count by 50%, to 30 wells up from 20, the company said. This will supply production volumes to the plant at Septimus, which should be onstream in third-quarter 2015, the company added.

The Deep Basin assets were exchanged for about $222 million in cash and about 400 barrels per day (bbl/d) of heavy oil production, the company said. The barrels were from the Lloydminster operating area, the company added.

The disposition is scheduled to close May 30, the company said, noting that 7,000 barrels of oil equivalent per day (boe/d) will be sold, alongside 34.1 boe/d of total proved reserves, 71% of which is natural gas.

Also, in a separate transaction, Crew Energy acquired some liquids-rich Montney natural gas properties for about $105 million, the company said. The properties include 75 net sections that either increase the company’s working interest in joint interest lands, or are contiguous with land the company already owns, the company noted.

In two transactions in late March, the company purchased the Septimus and Groundbirch Montney assets and also acquired 1,400 boe/d, 98% of which is natural gas, Crew Energy said. Crew now owns 452 net Montney sections, the company said, noting that out of that amount, 138 sections are in the oil window, 238 sections are in the wet gas window and 76 net sections are in the dry gas window.

On both transactions, Cormark Securities Inc. was financial advisor, Crew Energy said. TD Securities Inc. was strategic advisor on both as well, the company added, noting that Macquarie Capital Markets Canada Ltd. and GMP Securities LP were strategic advisors on the Montney acquisitions.

Calgary, Alberta-based Crew Energy produces light oil and natural gas in western Canada.