Calgary-based Baytex Energy Trust said Thursday it will pay C$109 million cash to buy a private Canadian-based oil and gas company. The private company focuses its exploration in three areas around southern Alberta, and the acquisition will add 3,200 boe/d to Baytex’s current production output, including 12 MMcf/d of natural gas and 1,200 bbl/d of light crude and natural gas liquids.
Baytex, which became an energy trust in September 2003, is currently producing about 34,400 boe/d of gas-weighted production in Sedalia/Garden Plains, Turin/Parkland and Crossfield, with 45% of the production complementary to its existing operations. About 92% of the production is from operated, working interest properties, and Baytex will acquire ownership and control of most of the key facilities and infrastructure within the operating areas.
Baytex estimates the acquisition includes 5.5 MMboe on a proved basis and 7.5 MMboe on a proved plus probable basis. The assets also include about 102,000 acres of undeveloped land, primarily located in Alberta. Baytex estimates the cost/producing oil equivalent barrel is C$31,560, with the cost/proved boe of C$18.36. The cost/proved plus probable boe is estimated at C$13.47.
The acquisition already has been approved by the company’s shareholders. Baytex said the acquisition will be accretive to the company on a production, reserves and cash flow/unit basis.
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