EFL Overseas Inc. (EFLO) has acquired from Nahanni Energy Inc. additional rights and interests in the Liard Basin natural gas field and facilities in the Kotaneelee area of the Yukon Territory, the Houston-based company said.
EFLO said it paid Nahanni $398,550 in cash, and shares of one of its subsidiaries valued at about $4.19 million, for a 30.67% interest in the Kotaneelee Gas Project (KGP). The deal made EFLO the largest interest holder in the project, with a 53.67% general interest and a 100% working interest in one gas well.
In July EFLO acquired an interest in the project from Devon Energy Corp.’s Canadian unit (22.99% general interest and a 69.34% working interest in one gas well) for $289,295.
The KGP covers 30,188 gross acres and includes a gas dehydration plant, a gas well producing on average 3.5 MMcf/d, a water disposal well and two suspended gas wells. The KGP has a fully developed gas gathering, sales and delivery infrastructure, airstrip, roads, flarestack, storage tanks, barge dock and permanent camp facilities, EFLO said.
“With the closing of the Nahanni acquisition, we are focused on actively pursuing additional interests at Kotaneelee and the surrounding area,” said EFLO CEO Keith Macdonald. “The larger asset base will be helpful as we evaluate our future market opportunities in the Pacific Rim, North America and the Yukon.”
Kotaneelee is currently the only producing field in the Yukon Territory, according to the provincial government’s Energy, Mines and Resources agency.
A recent report by Sproule Associates, based in large part on data from the Horn River, Cordova and Liard geological basins, concluded that Western Canadian holds a resource base of between 809 and 2,222 Tcf, which could produce between 170 and 435 Tcf of marketable gas (see Shale Daily, Oct. 8).
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