Calgary independents Manitok Energy Inc. and Petrus Resources Ltd. will acquire central Alberta foothills oil and gas assets from an undisclosed seller for $85 million.
The companies will participate 50-50 in the acquisition, which includes 2,600 b/d of oil equivalent production, 94% natural gas. Closing is set for Oct. 31 retroactive to July 1. Manitok and Petrus plan to jointly operate the assets and establish an area of mutual interest and are in discussions regarding a farmout of Manitok’s upcoming drill program on part of its foothills lands.
The acquisition consists of nearly 10 million boe of proved reserves and 6.8 million boe of proved and probable reserves, 63,000 acres of land 50% developed, 2D seismic, Cardium oil and gas locations with further opportunities in Cretaceous reservoirs, and a working interest in a sweet gas processing plant.
Manitok is a public company, and Petrus is a private firm formed by a technical team formerly with Peyto Exploration & Development Corp. to capitalize on natural gas opportunities.