By OGJ editors
HOUSTON, Aug. 2 -- Purcell Energy Ltd., Calgary, reorganized into an exploration-focused gas production company named Tenakaco and a gas production company named Purcell.
The reorganization also involves the sale for a combined $151 million of all the company's Saskatchewan assets and almost all of its Alberta assets. The moves cap a year of seeking alternatives to maximize shareholder value. Shareholders will receive stock in Tenakaco, and part of the consideration for the Alberta assets will be satisfied by the issuance of Prairie Schooner Petroleum Ltd. common stock.
Closing, subject to shareholder and Alberta court approval, is expected in October 2005.
Tenakaco will manage Purcell's production and reserves at Tenaka and all of Purcell's undeveloped acreage in northeast British Columbia, including Adsett. Purcell will retain its gas property at Fort Liard, NWT, and minor Alberta and BC producing and undeveloped properties.
As of Mar. 31, 2005, the Tenaka proved reserves were 1,027,000 boe and proved plus probable reserves were 1,829,000 boe.
Tenaka encompasses 85,500 gross (36,500 net) acres of contiguous lands covering 125 gas spacing units at an average 42.6% working interest. Purcell has identified up to 12 drilling locations on 3D seismic, including follow-up locations to this past winter's drilling and other separate prospects. Additional contingent drilling locations are being developed.
Another 91,396 net acres of undeveloped land and several minor producing properties will be transferred to Tenakaco.