Progress Energy to buy Canadian assets from BG

Progress Energy Ltd. agreed to buy some of BG Group's Canadian assets for $525 million (Can.). The Western Canadian Sedimentary Basin gas assets being sold are in three core areas known as Bubbles, Ojay, and Copton-Lynx.

By OGJ editors
HOUSTON, Mar. 6 -- Progress Energy Ltd. agreed to buy some of BG Group's Canadian assets for $525 million (Can.). The Western Canadian Sedimentary Basin gas assets being sold are in three core areas known as Bubbles, Ojay, and Copton-Lynx.

Closing, subject to clearance from regulators, is expected in April. BG will retain significant exploration prospects in Canada and Alaska as well its 50% interest in the producing Waterton asset in southwestern Alberta.

BG entered Canada with the purchase of El Paso Oil & Gas Canada Inc. in March 2004 (OGJ, Feb. 23, 2004, p. 31).

Bubbles, in northeastern British Columbia, has 57 wells. The gathering system includes 46 km of pipelines and four dehydration and compression facilities.

Ojay, also in northeastern British Columbia, has six wells producing from Cretaceous sands through a single compression and dehydration facility.

Copton, in western Alberta, produces from 18 wells in structured Cretaceous formations in the Canadian deep basin. This area has two gathering systems with over 59 km of pipelines and two compression and dehydration facilities.

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