Calgary-based independent Canadian Natural Resources Ltd. on Friday announced it paid C$280 million for some oil and gas properties in northeast British Columbia and northwest Alberta that complement its existing acreage.
The 415,000 acres of developed and undeveloped assets, bought from an undisclosed buyer, currently produce 68 MMcf/d and 200 bbl/d of light oil and natural gas liquids.
The new assets will give Canadian Natural more ownership in the Ladyfern gas field, which complements its existing holdings there. The Ladyfern portion of the purchased assets is now producing 50 MMcf/d, said the company. Approximately 18 MMcf/d also was acquired within other complementary core areas of British Columbia. Canadian Natural also acquired undeveloped acreage in the Foothills area of Alberta and British Columbia, which will add a new exploration base and complement existing holdings and production in the BC Foothills.
“The strategic fit of the acquisition is significant,” said COO Steve Laut. “Drilling upside is afforded through the expansion of our ongoing Notikewin and Gething natural gas plays onto acquired lands. Further, the Foothills lands enhance our deep exploration efforts and is similar to the Rio Alto acquisition in that it provides a highly prospective undeveloped land base to develop and expand our operations in a cost effective manner.”
The acquisition is being financed through existing debt facilities and will be incremental to the current capital expenditure budget, the company said.
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