PrimeWest Energy Trust Friday announced the closing of the previously announced transaction to purchase certain natural gas and crude oil properties located primarily in the Caroline and Peace River Arch areas of Alberta.

The 2002 exit production rate for these properties was approximately 6,800 boe/d, approximately 83% weighted to natural gas. The transaction closed on Jan. 23 for a purchase price of approximately $206 million, net of closing adjustments. Of the purchase price, approximately $191 million is attributable to natural gas and oil reserves and approximately $15 million is attributable to certain natural gas processing midstream assets.

The latest transaction is in addition to the acquisition in December of a smaller Caroline asset by the Calgary-based PrimeWest.

Offering guidance for 2003, PrimeWest expects production to average about 36,000 boe/d, with operating costs of $5.50/boe. Capital expenditures are expected in the $70 to $100 million range with the final amount being dependent upon natural gas and crude oil commodity prices and acquisition activities. Of this amount, approximately $20 million will be expended on the Caroline and Peace River Arch properties.

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