By OGJ editors
HOUSTON, May 15 -- NCE Petrofund Corp., a Calgary-based royalty trust, agreed to buy a package of western Canadian oil and natural gas properties from Murphy Oil Co. Ltd., El Dorado, Ark., for $66 million (Can.).
Closing is expected in late May or early June, with the effective date retroactive to Mar. 1. About 40% of the assets are subject to first rights of refusal, NCE Petrofund said. The price remains subject to adjustment.
NCE Petrofund said the properties' established reserves are 25% gas, and production is 42% gas. Current production net to the acquired interest is 2,300 boe/d. The trust said 40% of the properties are operated.
The acquisition is expected to replace 100% of NCE Petrofund's base 2003 annual production.
