Canadian junior producer MGM Energy Corp. on Thursday clinched a farm-out agreement in the Mackenzie Valley’s Canol Shale with a subsidiary of Royal Dutch Shell plc. Financial terms were not disclosed.
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Industry Brief
Cequence Energy Ltd., a junior explorer based in Calgary, said low natural gas prices have forced it to curtail 1.8 MMcf/d of production in the Peace River Arch area of northwestern Alberta. The producer also has reduced its 2012 capital budget by almost two-thirds, to C$36 million from $100 million. Cequence now expects production through June to average 10,200 boe/d, down from a prior estimate of 12,000 boe/d. Five horizontal wells (gross) are to be drilled in the first six months of this year. “Maintaining our balance sheet while moderating our growth profile in the current low natural gas price environment will allow Cequence the flexibility to add to our existing asset base by capitalizing on new opportunities as they arise,” said CEO Paul Wanklyn. In addition to Peace River, Cequence also operates in the Deep Basin of Alberta, where it has a prospective gas leasehold in the Simonette-Kaybob formation. “The stacked, liquids‐rich targets at Simonette remain an excellent source of significant future production and reserves growth for Cequence, in an improved natural gas price environment,” said the CEO.
Jones, Southridge, Pablo Join Forces in Arkoma Basin
Jones Energy Holdings (JEH) has acquired all of the producing properties in the Arkoma Basin owned and operated by Southridge Energy LLC and Pablo Energy II, which includes 20 MMcfe/d of current net production and more than 77,000 gross acres located primarily in the liquids-rich fairway of the Woodford Shale in Oklahoma’s Coal and Atoka counties, JEH said Wednesday. Terms of the deal were not disclosed.
Industry Briefs
Paramount Resources Ltd. has agreed to acquire Calgary-based junior independent ProspEx Resources Ltd., the companies said Friday. Under the agreement, ProspEx shareholders may elect to receive either C$2.40 in cash or 0.07162 of a Paramount Class A common share per ProspEx share, subject to pro ration, such that 2,000,000 Paramount shares will be issued. The transaction values ProspEx at $186 million, including net debt and transaction costs. ProspEx, which was formed in 2004 by the reorganization of Esprit Exploration Ltd. (see Daily GPI, Oct. 5, 2004), owns rights to 90,000 net undeveloped acres in West Central Alberta and the Deep Basin. Assuming approval by regulators and ProspEx shareholders, the deal is expected to be completed by the end of May. The ProspEx board has approved the deal and will recommend that shareholders approve it as well, the company said.
Corridor Resources to Explore Old Harry Prospect
Corridor Resources Inc. has begun the approval process to drill an exploration well on the Old Harry prospect in the Laurentian Channel, the Halifax, NS-based junior resource company said.
Alaska’s Junior Senator Urges Miller to Toss in the Towel
U.S. Sen. Mark Begich, Alaska’s junior senator, has called on Republican candidate Joe Miller to drop his legal challenge to the state of Alaska’s criteria for counting write-in ballots, which made incumbent Sen. Lisa Murkowski the apparent winner of the election for Alaska’s senior Republican senator post last month.
Samson Selling U.S. Gas Projects
With the prospect of higher natural gas prices in the near-term dwindling, junior producer Samson Oil & Gas Ltd. said Friday it will sell most of its domestic gas projects and turn its attention to domestic oil-weighted holdings.
Pinnacle Gas Agrees to Go Private in Investor Buyout
Junior producer Pinnacle Gas Resources Inc., which explores for coalbed methane (CBM) across the Rocky Mountains, said Wednesday it would be taken private in an all-cash transaction by an investor group that agreed to pay a 28% premium to the company’s closing price on Wednesday.
Pinnacle Gas Agrees to Go Private in Investor Buyout
Junior producer Pinnacle Gas Resources Inc., which explores for coalbed methane (CBM) across the Rocky Mountains, said Wednesday it would be taken private in an all-cash transaction by an investor group that agreed to pay a 28% premium to the company’s closing price on Wednesday.
Wyoming’s Pinnacle Sells Gas Assets to Raise Cash
Pinnacle Gas Resources Inc., a junior explorer that focuses on coalbed methane (CBM) resources in the Rocky Mountains, has sold some undeveloped acreage and gas gathering assets in Wyoming for $3.2 million. Some of the proceeds will be used to pay down debt.