By OGJ editors
HOUSTON, July 12 -- Provident Energy Trust, Calgary, plans to acquire $476 million in gas producing assets in the Rainbow and Peace River arch areas of northwestern Alberta with "strong future development potential" from an undisclosed seller.
The assets produce 33 MMcfd of gas equivalent, 90% gas, from 22.2 million boe of proved and probable reserves. The production is mainly sweet gas from shallow reservoirs in the Rainbow, Haro, Boyer, and Rainbow South areas and from multiple zones in the Pouce Coupe and Gordondale areas in the Peace River arch.
The transaction is to close by the end of August and take effect June 1, 2006.
Provident will operate 97% of the assets with an average 75% working interest. The acquisition includes large ownership interests in four gas processing plants. More than 200 drilling locations are identified on the properties that will allow the company to maintain production through 2010 with $25-30 million/year in capital investment.
The acquisition includes more than 280,000 net acres of land, of which more than 80,000 net acres is undeveloped.
