PrimeWest acquiring southeastern Alberta producing assets

PrimeWest Gas Corp., Calgary, agreed to acquire the outstanding shares of Seventh Energy Ltd., a production company focused on southeastern Alberta, for $34.6 million (Can.), plus debt and working capital adjustments.

Jan. 30, 2004

By OGJ editors
HOUSTON, Jan. 30 -- PrimeWest Gas Corp., Calgary, agreed to acquire the outstanding shares of Seventh Energy Ltd., a production company focused on southeastern Alberta, for $34.6 million (Can.), plus debt and working capital adjustments.

In addition, PrimeWest agreed to an additional $8.7 million in assumed debt and working capital adjustments. The acquisition, subject to regulatory approval, is expected to close by Mar. 18.

The acquisition involves predominantly gas production assets adjacent to PrimeWest's existing assets in the Princess, Hays, and Taber areas. The acquired assets produce 1,300 boed, of which 72% is gas and 28% is crude oil and natural gas liquids.

The acquisition totals 3.1 million boe of proven plus probable reserves, 39,000 net acres of undeveloped land, and a proprietary 3-D seismic inventory, PrimeWest said. It plans to invest $7 million in drilling, facilities, and waterflood projects.