Nova Scotia to sell oil, gas company

Pengrowth Energy Trust, Calgary, and two other companies have agreed to acquire Nova Scotia Resources Ltd. (NSRL) and interests in the Sable Offshore Energy Project, offshore Nova Scotia, for $420 million (Can.) prior to adjustments. NSRL is owned by the government of Nova Scotia.


By an OGJ Online Correspondent

CALGARY, Feb. 7�Pengrowth Energy Trust, Calgary, and two other companies have agreed to acquire Nova Scotia Resources Ltd. (NSRL) and interests in the Sable Offshore Energy Project, offshore Nova Scotia, for $420 million (Can.) prior to adjustments.

NSRL is owned by the government of Nova Scotia. The deal is scheduled to close in mid-April.

Pengrowth will pay $265 million and will acquire the natural gas and liquids reserves from NSRL�s 8.4% interest in the Sable Offshore Energy Project, which is now producing gas for markets in Atlantic Canada and New England.

Emera Inc., Nova Scotia, will acquire NSRL�s 8.4% interest in the Sable infrastructure assets, and PanCanadian Petroleum Ltd., Calgary, will acquire the remaining assets in NSRL, including its interests in Cohasset and Panuke fields, and significant discovery licenses. PanCanadian has made some natural gas discoveries at Panuke, where gas underlies an oil reservoir that has been depleted.

Pengrowth said its share of Sable reserves will be 359.5 bcf equivalent of gas, using a 10:1 conversion, comprised of 256 bcf of gas and an additional 10 million bbl of gas liquids on a proven and probable basis.

The Sable project has an overall reserve life of 30 years and a reserve life index of 20 years on a proved and probable basis.

Pengrowth expects its share of production to increase to 6,262 boe/d in 2003 from 4,892 boe/d in 2001.

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