Canadian Overseas Petroleum Ltd. (COPL) has agreed to acquire private company Atomic Oil & Gas LLC for $54 million in assumed debt, cash, and shares.
Atomic holds operated interests in 52,258 acres (gross) of contiguous leasehold in Wyoming’s Powder River basin.
There are two oil production units within the lease block: the Barron Flats Shannon Miscible Flood Unit (57.7% WI) and the Cole Creek Unit (66.7%), as well as one unitized exploration area—the Barron Flats Federal Unit (deep). Atomic has two affiliates: The Southwestern Production Corp., the operating entity; and PipeCo, a midstream company holding the pipeline and facility assets.
With the deal, COPL acquires 31.1 MMboe (24.7 MMboe net after royalties) of proved and probable reserves (2P). The current production rate of 1,400 b/d (gross) is expected to rise to 5,000 b/d (gross) in 2022 and around 7,000 b/d (gross) in 2026. Produced crude oil is light (40°API) and sweet.
Upon completion, expected by Jan. 31, 2021 with an effective date of Dec. 1, 2020, the operative staff of Southwestern Production will join COPL.
