Kelt Exploration Ltd. will dispose of oil and gas assets in Alberta’s Karr area for CA$100 million in gross proceeds, according to a Jan. 4 press release.

Kelt Exploration entered a purchase and sale agreement. The adjusted effective disposition date is Jan. 1, and the transaction is scheduled to close Jan. 18. The purchaser provided Kelt a CA$10 million deposit that will be held in escrow until closing.

On Dec. 31, 2015, there were 5.1 million barrels of oil equivalent (MMboe) and 12.7 MMboe of proved plus probable reserves.

Estimated average production for December 2016 was 1,303 boe/d --34% oil, 16% NGL and 50% gas.

Land holdings include 16,480 gross acres (25.7 sections) and 16,400 net acres (25.6 sections) of which 9,920 gross acres (15.5 sections) and 9,840 net acres (15.4 sections) including Montney rights. About 79% of net land holdings were classified as undeveloped by Kelt.

Tangible equipment includes a 100% interest in the Kelt Karr 10-21-65-3W6 oil battery and a 2.26% interest in the CNRL Karr 10-10-65-2W6 gas plant.

Kelt also said it began development pad drilling on its Montney oil play at Karr in December.

Kelt retains certain nonoperated interests at Karr with current production of about 124 boe/d.