Tamarack Valley Energy Ltd., Calgary, has agreed to acquire Anegada Oil Corp., a privately held pure play producer in the Carnian Charlie Lake light-oil formation in British Columbia.
Assets include about 11,800 boe/d of Charlie Lake light oil production (71% oil and natural gas liquids) and over 200 net future drilling locations across 332.4 (321.2 net) sections of Charlie Lake land, proved developed producing reserves of 10.5 MMboe (70% liquids) and total proved plus probable reserves of 40.1 MMboe (71% liquids) based on Tamarack’s internal reserves evaluation effective June 1. Production in 2022 is expected to increase and be maintained at 12,000-13,000 boe/d.
Total net consideration for the deal is $494 million (Can.) after deducting the proceeds from the sale of a 2% newly created gross overriding royalty. The total net consideration consists of $247.5 million in cash and debt, subject to adjustment, and 105.3 million common shares of Tamarack. In conjunction with the deal, Tamarack agreed to sell a 2% gross overriding royalty interest on the assets to Topaz Energy Corp., Calgary, for gross proceeds of $32 million.
The acquisition is expected to close May 31, subject to certain customary conditions and regulatory and other approvals.
Tamarack has updated its preliminary 2021 capital budget based on the acquisition to $165-175 million from $125-130 million, and its average production to 33,000 boe/d from 26,000 boe/d.
