True to statements last week that acquisitions were on the radar screen (see Daily GPI, Sept. 7), Canadian Hunter Exploration Ltd. said Monday it has acquired a Canadian company and another in Argentina. The Canadian assets, acquired from a private company for C$22.5 million, include property in the Chedderville and Garrington areas of West Central Alberta, adjacent to Canadian Hunter property. Neither acquisition is expected to materially impact Canadian Hunter’s 2001 production forecast.

According to Canadian Hunter, the Canadian assets’ proven reserves include 14 Bcf, 31,000 bbl in natural gas liquids and 730,000 bbl of oil. They are currently producing 2.5 MMcf/d, 90 bbl/d in natural gas liquids and 410 bbl/d in oil. In total, Canadian Hunter’s proven reserves will grow to 1 MMboe, and add 920 boe/d. In addition to the proven reserves and production, Canadian Hunter said that the property holds “significant” exploitation and exploration upside.

Calgary-based Canadian Hunter closed on an agreement to buy the Canadian assets on Sept. 7. Along with increasing its interest in the Chedderville oil property, the acquisition will expand its production base in northeastern Alberta and will add about 52,000 net acres of undeveloped land with exploration and development opportunities. It includes tax pools of C$40 million, and Canadian Hunter said in a statement that “these assets meet the criteria for growing net asset value that we apply in approaching both acquisitions and exploration.”

Canadian Hunter also purchased the remaining Class A common shares of Atalaya Energy SA for US$13.5 million, effective Aug. 15. The shares were owned by Capex SA and Clan Energy International Fund, and will increase Canadian Hunter’s working interest in the Chihuidos Exploration Permit and the Sierra Chata Exploitation Concession in the Province of Neuquen, Argentina by 2.2% to a total of 25.7%.

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