West Lake Energy Corp., Calgary, has closed a deal to acquire Boulder Energy Ltd., a privately held primarily light-oil producer with assets in the Brazeau area of West Central Alberta.
The deal provides a new core area for West Lake that targets the Belly River formation, characterized as low decline, high netback, assets with development upside and low asset retirement obligations, West Lake said in a release Sept. 8.
Prior to the acquisition, West Lake Energy’s operations were focused in the Provost medium oil region and the Lloydminster heavy oil region, which contained over 90% of the company’s production.
Belly River is a 350-m thick, stacked channel system that offers multiple drilling locations and reservoir targets, the company said.
The deal includes about 140,000 net acres of concentrated land and infrastructure; some 2,500 boe/d of light oil production (44˚ API); production decline of 17%; proved and probable reserves of 32.8 MMboe (as of Dec. 31, 2020), original-oil-in-place of 777 MM bbl with lower than 3% recovery factor to date; and over 160 identified drilling locations with water flood and EOR potential, West Lake said.
Over the next 18 months, the privately held company intends to develop the Belly River assets through a combination of optimization, multi-lateral drilling, and secondary recovery, it said.