Spartan Delta adds new core area in Alberta Montney with acquisitions
Spartan Delta Corp., Calgary, has closed deals to acquire oil and gas assets in Alberta including the corporate acquisition of Inception Exploration Ltd., a Montney-focused arm's length private company with operations in the Gold Creek area of northwest Alberta, and the purchase of assets primarily in the Simonette area of northwest Alberta and Willesden Green area of west-central Alberta. Total consideration for the three acquisitions is $147.9 million.
The acquisitions add a new core area in the Alberta Montney and complement Spartan's existing area in the Cardium and Spirit River in west-central Alberta. January 2021 production from the acquired assets is 9,700 boe/d (2,181 b/d oil, 1,215 b/d of NGLs, and 37.8 MMcfd of natural gas) with 235,393 net acres of land predominantly at Gold Creek, Simonette, and Willesden Green and 414 net identified drilling locations (343 net Montney locations).
Processing infrastructure includes 100% working interest (WI) in a 10,000 b/d operated central oil battery in Gold Creek, 100% WI in a 40 MMcfd operated natural gas processing plant in Gold Creek, 50% WI in a 120 MMcfd natural gas processing plant in Simonette, and water disposal facilities.
Spartan expects 2021 production to average 35,500-37,500 boe/d, consisting of 4% crude oil, 4% condensate, 23% NGLs, and 69% natural gas. The acquired assets increase Spartan's oil-weighted production and drilling inventory and include processing infrastructure with limited additional capital required to increase production volumes, the company said.
