Zodiac Exploration Inc., Calgary, plans to acquire Muskwa Resources Ltd., a private central Alberta operator, by the end of November.
Muskwa, incorporated in 2008, has 54,240 acres of land in central Alberta, primarily in the Duvernay and Nordegg formations, and pending asset acquisitions in Montana from Jackfish Exploration Inc. and Tanglewood Energy Inc. will add up to 24,000 net acres of land upon satisfaction of certain conditions under the agreements relating to the two acquisitions.
Muskwa’s land position has significant stacked resource potential in the Duvernay, Nordegg, Montney, and Beaverhill Lake formations.
Zodiac noted that Industry has spent more than $6 billion on land, corporate acquisitions, and wells in the Duvernay play.
Aggressive interest and activity exists in the area in which Muskwa holds land with over 90 wells drilled by large producers proving up the Duvernay light oil window with commercial results. Several recent commercial discoveries have been made in the Duvernay light oil window south of Muskwa’s land position, Zodiac noted.
The Duvernay formation has 443 tcf of gas and 73 billion bbl of oil and natural gas liquids in place as of June 2012, the Alberta Geological Survey estimated.