Spartan Energy Corp. (TSXV: SPE.V) announced on May 27 a strategic southeast Saskatchewan light oil acquisition.

Calgary, Alberta-based Spartan entered into a definitive purchase and sale agreement to acquire properties from Lightstream Resources Ltd. (TO: LTS.TO), also based in Calgary, for about US$90.4 million (C$98 million), the company said. The assets currently produce an estimated 1,000 barrels of oil equivalent per day (boe/d) of high netback, low decline light and medium oil and complement Spartan's existing southeast Saskatchewan assets, the company said.

The assets represent 20% of the production associated with Lightstream's conventional business unit, and include 700 (356 net) wells, representing 36% of its conventional business unit wellbores, Spartan added.

Spartan expects the low decline assets to reduce its base corporate decline rate to about 23% and help its sustainable production growth strategy, the company noted. The acquisition adds about 3.95 million boe of gross proved plus probable reserves, Spartan said. Of that amount, 96% is oil and liquids, according to an estimate from Dec. 31, 2013 from Calgary-based Sproule and Associates Ltd., the company said. The reserves represent an acquisition cost of some $22.25/boe, Spartan said.

Spartan is revising its 2014 guidance upward as a result of the acquisition, the company noted. The acquisition is scheduled to close by July 7, the company said.

Concurrent with the acquisition, Spartan entered into a $100 million bought deal financing with a syndicate of underwriters, the company said. The financing is expected to close by June 17, Spartan added.