Veresen Midstream closes Montney gathering assets
Veresen Midstream LP closed on its acquisition of certain natural gas gathering and compression assets from Encana Corp. and Cutbank Ridge Partnership in the Montney area in northeastern British Columbia.
"By unlocking value from these assets, we can redirect capital to strategic upstream opportunities, enhance our financial flexibility, and maintain involvement in facility construction and operatorship in one of our strategic growth areas," said Renee Zemljak, Encana executive vice-president, midstream, marketing, and fundamentals.
Under terms of the $461 million (Can.) asset transaction, Veresen Midstream became a 50:50 partner with affiliates of Kohlberg Kravis Roberts & Co. LP. Cutbank Ridge Partnership (CRP) is a partnership of Encana and a subsidiary of Mitsubishi Corp.
Additionally, Veresen Midstream agreed to undertake up to $5 billion of midstream expansion to support development. Encana will continue as operator and handle infrastructure construction on behalf of Veresen Midstream, which will oversee other ownership activities.
Encana and CRP will rely upon Veresen Midstream for gathering and compression services under separate fee-for-service arrangements within the Montney play.
Crescent Point buys Legacy Oil + Gas
Crescent Point Energy Corp. of Calgary agreed to acquire Legacy Oil + Gas Inc. in a stock transaction and the assumption of debt for $1.5 billion (Can.) total, boosting Crescent Point's southeast Saskatchewan holdings and giving it entry into the emerging Midale light-oil play.
Crescent Point agreed to acquire $563 million worth of Legacy stock and to assume $967 million of net debt.
"Our balance sheet and our financial strength allow us to execute on our growth strategy and to protect our dividend in a low oil-price environment," Crescent Point Chief Executive Scott Saxberg said.
Crescent Point said the Legacy acquisition would add about 22,000 boe/d of production, of which 82% is liquids. Assets being acquiring included conventional and unconventional holdings in southeast Saskatchewan, Manitoba, and North Dakota.
The assets include 525 net sections of land in southeast Saskatchewan of which 200 net sections are in the emerging Midale play, Crescent said.
Blackbird names vice-president operations
Blackbird Energy Inc. of Calgary named Don Noakes as its vice-president of operations, noting he has worked on wells within the Montney, Wilrich, Dunvegan, and Cardium plays within the Deep Basin of northern Alberta in the last 5 years.
An engineer, Noakes brings more than 30 years of experience focused on drilling, completions, production operations, and reservoir exploitation.
Noakes directly supervised the drilling and completion operations of Montney wells up to 6,000 m long within the Kakwa-Jayar region, which is on trend with Blackbird's Elmworth acreage. He supervised Montney wells that achieved a 40% reduction in drilling times.
Previously, Noakes held senior positions through his consulting company at Murphy Oil, Mosaic Energy Ltd., APL Oil and Gas, Bow Valley Energy, and Culane Energy, in addition to permanent positons within Magin Energy Inc., and Mobil Oil.
Canada's officials appoint Murray Lytle to NEB term
Canada's natural resources and economic development officials have appointed Murray Lytle as a full-time member of the National Energy Board for a term of 7 years, effective July 6.
Lytle is an engineering and executive management professional with experience in Canada and South America in oil, gas, and mining as well as equity finance.
Most recently, Lytle served as divisional manager for Snowden Mining Industry Consultants of Calgary.
NEB is an independent Canadian federal agency that oversees international and interprovincial aspects of oil, gas, and electric utility industries.
