ARC Energy Trust, Calgary, (Toronto: ARX) has closed the purchase of shares in wholly owned subsidiary companies of Calgary-based Imperial Oil Resources (Toronto: IMO) and ExxonMobil Canada Energy that own a 45.57% working interest in the North Pembina Cardium Unit No. 1 and a principal interest in the Redwater Field in central Alberta for C$462 million. The acquisition was financed with the proceeds of an equity issuance and from the company's line of credit, which was increased to C$950 million at closing. ARC president and chief executive John Dielwart says, "These 'legacy' assets are two of the largest and highest-quality light-oil fields ever discovered in western Canada. Although these fields currently have high operating costs and Redwater has a material abandonment liability, the big prize is the remaining oil in the reservoir that has not been included in our reserve assessment. Our task will be to translate that potential into value for our unit-holders." The acquired companies hold large working interests and operatorship in two central Alberta oil fields with production of some 5,460 barrels of oil equivalent per day, proved reserves of 34.6 million barrels of oil equivalent and proved-plus-probable reserves of 40 million barrels, representing a 16% increase to ARC's proved-plus-probable reserves. The proved reserves give the acquisition a price of C$13.35 per proved barrel of oil equivalent, according to ARC, and the proved reserve-life index is approximately 17 years.
Recommended Reading
SilverBow Resets Shareholder Meeting After $2.1B Crescent Deal
2024-05-16 - SilverBow Resources said it will adjourn its May 21 shareholders’ meeting until May 29 following Crescent Energy’s agreement to buy the Eagle Ford operator.
Blue Racer Midstream Prices Senior Notes Offering
2024-05-15 - Net proceeds from the sale of senior notes will be used to pay off debt and other general corporate purposes.
Petrobras CEO Prates to Step Down
2024-05-15 - Brazil’s President Luiz Inácio Lula da Silva has requested that Petrobras CEO Jean Paul Prates resign following a dispute over dividend payments.
Pembina Pipeline to Renew Share Repurchase Program
2024-05-14 - Pembina Pipeline has approval from the Toronto Stock Exchange to purchase up to 5% of its outstanding common shares.
ProPetro Adds Exxon Designee Volkov to Board
2024-05-14 - Alex Volkov is currently the transition executive tasked with planning the integration of Pioneer Natural Resources and Exxon Mobil.