By OGJ editors
HOUSTON, Sept. 10 -- San Jose, Calif.-based independent power producer Calpine Corp. has inked a deal with NAL Resources on behalf of NAL Oil & Gas Trust, Calgary, and another institutional investor, for the sale of certain Canadian oil and gas properties, deemed "nonstrategic," for about $125 million (Can.).
The assets, which lie about 25 miles west of Red Deer in central Alberta, hold 60 bcfe of net proved reserves, 70% of which are oil and liquids, Calpine said. Current net production is 19 MMcfed. The assets include 18,845 developed acres, 9,920 undeveloped acres, and more than 225 producing wells.
Under the agreement's terms, 42% of the acquisition is subject to rights of first refusal, which expires Sept. 28. The balance of the transaction closed Aug. 30.
Calpine will "continue to evaluate opportunities for the sale of other nonstrategic assets," said Bob Kelly, Calpine chief financial officer and executive vice-president.
