Paramount gains assets in Edson, Alta., area

By OGJ editors
HOUSTON, Mar. 12 -- Paramount Energy Trust, Calgary, will buy oil and gas assets in the Edson area of west-central Alberta from an undisclosed intermediate Canadian E&P company for $126 million.

The trust will acquire 10.1 MMcfd of gas equivalent production, 80% gas, and extensive gathering and processing facilities and undeveloped lands.

The assets to be acquired include 8.1 MMcfd of gas and 330 b/d of oil and natural gas liquids production from the Rock Creek, Bluesky, Ellerslie, Viking, Blueridge, Notikewin, Second White Specks, and Beaverhill Lake formations. The vendor’s consulting engineers assigned the assets 34.5 bcf of gas reserves and 1.4 million bbl of liquids reserves.

As part of the deal, the trust agreed to take a farmout on 37 gross (31 net) undeveloped Cardium rights in the area, of which 22 net sections PET believes prospective for light oil. The farmout includes a two-well horizontal drilling and completion commitment.

The deal is retroactive to Jan. 1 and expected to close by Apr. 1.