By OGJ editors
HOUSTON, Aug. 14 -- Delphi Energy Corp., Calgary, announced earlier this month it will buy some natural gas properties in the Gold Creek and Wapiti areas of northwest Alberta for $11.8 million (Can.). These properties are between Delphi's Hythe and Bigstone properties.
Delphi also said it will dispose of 40% of the acquired working interest in the properties to an unnamed third party following close of the acquisition at the end of this month.
The purchase brings with it the following:
-- Incremental production of 400 boe/d, consisting of 77% natural gas and 23% oil and NGLs, and proven-plus-probable reserves effective May 31 of more than 1.4 million boe.
-- Ownership in three natural gas processing plants with combined throughput capacity of 720 MMcfd, 10 compressor stations, and 393 km of gathering and transportation pipelines. The gas plants are the Devon Wapiti Deep Cut gas plant, Devon Wapiti Shallow Cut gas plant, and BP’s South Wapiti gas plant.
-- Reserves and production-acquisition costs, excluding about $1 million allocated to undeveloped land.
These costs include, according to the announcement, proved reserves excluding future development capital of $12.61/boe; proved reserves including FDC of $19.82/boe; proved-plus-probable reserves excluding FDC of $7.43/boe; proved-plus-probable reserves including FDC of $12.48/boe; and production addition costs of $26,000/flowing boe.
The purchase, Delphi said, will increase its undeveloped land position by 8% to about 135,000 net acres. Delphi has internally valued this undeveloped land at about $1 million, it said.