By OGJ editors
HOUSTON, Apr. 15 -- ARC Energy Trust, Calgary, plans to acquire private Star Oil & Gas Ltd., also of Calgary, for $710 million by the end of April.
The deal is to be retroactive to Jan. 1, 2003.
ARC said 75% of the production from Star's properties is natural gas. The properties possess significant development opportunities.
Just over half of Star's production comes from the three largest fields: Dawson, Pouce Coupe, and Hatton gas fields. January 2003 production averaged 3,600 b/d of oil, 1,400 bbl of NGL, and 90 MMcfd of gas.
The proved reserves to be acquired include 11.9 million bbl of oil, 3.7 million bbl of natural gas liquids, and 288 bcf of gas, plus additional probable reserves in each category.
Dawson field came on line in early 2001 in Northeast British Columbia. With 950 bcf in place, only 12% ultimate recovery has been booked as proved and 15% booked as established. The field averages 18 MMcfd from 34 wells, and 10 more wells are to be drilled in 2003.
Pouce Coupe field, in Alberta and adjacent to Dawson field, averages 24 MMcfd from Kiskatinaw, Baldonnel, Halfway, Doig, and Montney. ARC believes further development potential exists.
Another 22 MMcfd comes from Southwest Saskatchewan in Hatton, Crane Lake, and Horsham fields, collectively known as the Hatton area. ARC identified up to 600 drilling locations on Star's Hatton properties, which are adjacent to ARC's Hatton properties.