Calgary-based Husky Energy Inc. said it has purchased privately-held Temple Exploration Inc. for C$115 million. The deal give Husky an additional 4,400 boe/d of oil and gas production (19 MMcf/d of gas and 1,284 bbl/d of oil) for the remainder of 2004 and about 29 Bcfe of proven reserves with additional future exploration growth potential.
Husky said the reserves consist of 21.4 Bcf of gas and 7.6 Bcfe of gas liquids. Probable reserves total 15.6 Bcfe. Temple’s producing properties, proven reserves, seismic data and undeveloped land are located in the Deep Basin in northwestern Alberta, where Husky already has existing production and infrastructure. The transaction, which includes $13.5 million of working capital, closed Thursday.
“Temple’s assets are an excellent fit strategically and provide good opportunities for Husky to grow its natural gas production in the Deep Basin over the next two years,” said Husky CEO John C.S. Lau. “We plan to take advantage of the upside potential of these assets. This acquisition is accretive to Husky’s earnings and cash flow.”
Husky has set targets to double production from the Temple properties over the next two years. The company plans a drilling program on the undeveloped acreage, with up to 25 wells (17 net to Husky) by 2006.
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