Athabasca Oil Corp. agreed to sell infrastructure assets to Enbridge Inc. (NYSE: ENB) in a C$265 million cash transaction that the Canadian energy company said Dec. 10 unlocks “tremendous value.”
The deal consists of Leismer pipelines and a Cheecham storage terminal serving the Leismer oil sands and Corner projects in Athabasca’s thermal oil business in Alberta.
Athabasca acquired the Leismer and Corner assets in 2017 in a transaction comprised of C$435 million cash plus stock and contingency payments. However, Athabasca said proceeds from its transaction with Enbridge will help the company more than recoup the cost of that acquisition.
Transaction proceeds are roughly 50% of Athabasca’s market capitalization and will be used to bolster the company’s liquidity, reduce net debt and improve financial resiliency, according to the company press release.
Athabasca said Enbridge has been a key partner across its thermal oil business and it will continue the company’s long-term strategic relationship with the pipeline operator following close of the transaction expected in first-quarter 2019.
Recommended Reading
Well Logging Could Get a Makeover
2024-02-27 - Aramco’s KASHF robot, expected to deploy in 2025, will be able to operate in both vertical and horizontal segments of wellbores.
Shell Brings Deepwater Rydberg Subsea Tieback Onstream
2024-02-23 - The two-well Gulf of Mexico development will send 16,000 boe/d at peak rates to the Appomattox production semisubmersible.
E&P Highlights: Feb. 26, 2024
2024-02-26 - Here’s a roundup of the latest E&P headlines, including interest in some projects changing hands and new contract awards.
Remotely Controlled Well Completion Carried Out at SNEPCo’s Bonga Field
2024-02-27 - Optime Subsea, which supplied the operation’s remotely operated controls system, says its technology reduces equipment from transportation lists and reduces operation time.
Tech Trends: Halliburton’s Carbon Capturing Cement Solution
2024-02-20 - Halliburton’s new CorrosaLock cement solution provides chemical resistance to CO2 and minimizes the impact of cyclic loading on the cement barrier.