Journey Energy Inc., Calgary, has agreed to acquire producing petroleum and natural gas assets in Alberta from Enerplus Corp. for $140 million, the two companies said in separate releases July 29.
The assets are currently producing about 3,400 boe/d (60% crude oil) on a net after deduction of royalty basis (4,400 boe/d before deduction of royalties) primarily in Medicine Hat (secondary and tertiary recovery), Kaybob, Ferrier, and Ante Creek (secondary recovery) areas of Alberta. Assets include 420 net wells and 45,672 gross (15,338 net) undeveloped acres, and proprietary operated and non-operated seismic data totaling 18,666 km of 2D data and 1,847 sq km of 3D seismic data.
The transaction offers Journey “extensive infrastructure to facilitate years of future development drilling and waterflood/enhanced oil recovery optimization,” the company said in its release.
Pro-forma, assuming an Oct. 1 closing date, the deal will is expected to increase Journey's fourth-quarter production to 14,200-14,600 boe/d and increase the company’s liquid (oil, NGL) weighting to about 55%.
