PETROCAN FORMS NONCORE UPSTREAM BUSINESS UNIT
Petro-Canada, Calgary, has essentially completed its upstream asset rationalization program with the formation of a new, autonomous business, TroCana Resources.
Petro-Canada resources division Pres. Norm McIntyre said, "We created TroCana to generate the greatest economic value from the portion of our asset base best exploited by a small company. Our intention is that at an appropriate time we will sell TroCana and reinvest a significant portion of the proceeds in our core western Canada businesses.
Petro-Canada Resources will then have divested all of its noncore western Canadian conventional assets."
The asset rationalization program has been a key element of Petro-Canada Resources; strategy of focusing its capital and human resources on a limited number of strategic properties. The program has consolidated Petro-Canada's western Canada asset base from more than 500 producing entities to about 150 core entities in 24 strategic producing areas.
Petro-Canada now concentrates on those core assets, where it holds significant working interests and which provide opportunities for value growth.
TroCana will participate in all aspects of the conventional upstream business in western Canada.
Current production is about 6,500 b/d of oil and natural gas liquids and 35 MMcfd from 85 properties, mainly in Alberta although some are in British, Columbia and Saskatchewan. The volume amounts to about 8% of Petro-Canada's previous production.
Copyright 1993 Oil & Gas Journal. All Rights Reserved.