By OGJ editors
HOUSTON, Aug. 18 -- PrimeWest Energy Trust agreed to buy all the oil and natural gas assets owned by Calpine Energy Holding Ltd. and Calpine Canada Natural Gas Partnership from Calpine Corp. for $806 million. All the firms are based in Calgary.
The purchase of reserves accounts for $649 million, $48 million is for undeveloped land and seismic data, $35 million is for third-party processing income, and $74 million is for the purchase of a 25% interest in Calpine Natural Gas Trust.
Subject to regulatory and other conditions, the transaction is expected to close on Sept. 2.
PrimeWest is acquiring 14,500 boe/d of natural gas production in west-central and southern Alberta. The production is weighted 83% to natural gas, 11% to natural gas liquids, and 6% to crude oil.
