By OGJ editors
HOUSTON, June 26 -- PrimeWest Energy Trust, Calgary, said a US subsidiary will acquire producing oil and gas assets with large secondary and tertiary oil potential in Montana, North Dakota, and Wyoming.
PrimeWest did not disclose the seller in the $330 million (Can.) transaction, set to close July 6.
The properties produce 3,200 boe/d, 94% crude oil and 70% light crude from formations of Mississippian and Devonian age, in the Williston basin, a new area for PrimeWest. The acquisition changes the overall company weighting to 32% crude oil and other liquids. Proved reserves being acquired total 20.4 boe.
Covering 47,000 net acres, the main fields include Flat Lake, Dwyer, and Goose Lake in Montana, Rival, Grenora, Alexander, Wiley, Glenburn, and Sherwood in North Dakota, and Rocky Point in Wyoming.
PrimeWest plans to spend $23 million (Can.) this year in the fields, mostly spaced at 80-160 acres and where it has identified infill horizontal candidates and other drilling opportunities.
The fields have further upside in higher density infill drilling, waterflood optimization, and possible enhanced oil recovery projects, the company said.
