Enterra Energy Trust, Calgary, (Nasdaq: EENC; Toronto: ENT.UN) plans to acquire producing wells, undeveloped land and an operating company with its employees, equipment and infrastructure for total consideration of some US$246 million. There is also a possibility that the sellers may be able to acquire small additional interests in producing wells from their current working interest partners, which in turn would also be purchased by Enterra. The purchase price will be paid through a combination of cash, the issuance of trust units of Enterra and the assumption of debt. Closing of the transaction is expected by mid-January with respect to one seller and the end of February with the remaining sellers. The assets are currently producing some 5,500 barrels of oil per day (80% gas), which will bring Enterra's overall production to more than 15,000 barrels of oil per day. The purchase also includes more than 65,000 net acres of land of which more than 40,000 net acres are undeveloped. These properties will be developed through a joint venture Enterra plans to enter into with Petroflow Energy Inc. Petroflow presented this acquisition opportunity to Enterra through its relationship with Macon Resources Ltd. Macon holds approximately a 10% interest in Petroflow Energy. "This acquisition is consistent with and extends Enterra's business plan, providing both existing production and substantial development opportunities," says Keith Conrad, president and chief executive of Enterra. "We also hope to supplement our current staff by retaining the existing staff in Oklahoma once the acquisition closes."
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