Aquest Explorations Ltd. said Friday it has entered into a purchase agreement with Red Leaf Energy Inc. to acquire more than 500 boe/d (6:1) of production through three properties in East Central Alberta. The C$12 million sale is effective Jan. 1.

Aquest said current production from the properties is comprised of approximately 2.5 MMcf/d of net sales gas from 10 wells completed in the Basal Quartz, Mannville, Ellerslie and Viking, 74 b/d of oil from an oil well completed in the Basal Quartz and 9 b/d of NGLs. The company said it will hold mostly 100% working interests in 37.5 sections of operated land that is multi-zone prospective.

Aquest said it believes significant upside has been identified that includes several optimizations, reactivations, work-overs, completion and tie-ins of existing wells, water disposal for increased productivity and operating cost reduction, and development drilling.

Assets in the sale include:

Aquest said completion of the acquisition is dependant on a number of things, such as being able to secure the requisite financing and obtaining regulatory approval by Jan. 17. The company added that it intends to finance the acquisition with a combination of debt and equity.

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