International Petroleum Corp. (IPC) has closed a deal to acquire Granite Oil Corp., Calgary. The acquisition includes total proved plus probable (2P) reserves of 14.0 MMboe and 6.2 MMboe of unrisked contingent resources (best estimate) as of Dec. 31, 2019.
Granite’s core asset, the Upper Bakken in southern Alberta—also known as the Alberta Bakken—stretches over a 30-mile fairway and produces medium gravity (30-32° API), high-quality crude oil, according to the company’s website. In 2012, Granite (formerly DeeThree Exploration Ltd.) drilled the discovery wells that established the Upper Bakken as a commercial oil reservoir. Since then, the main producing pool has produced over 6.0 million bbl of crude oil.
The acquisition includes existing infrastructure to enable the current gas injection EOR scheme, with capacity to allow for potential further field development. Also included are associated oil and gas processing and injection facilities in proximity to key sales points, IPC said.
IPC acquired all issued and outstanding common shares of Granite for $27 million (CAD 37.1 million) and assumed Granite’s net debt of $30 million (CAD 40 million). Each former Granite shareholder is entitled to receive CAD 0.95 for each Granite Share held prior to the acquisition.
International Petroleum Corp. is a member of the Lundin Group of companies.
