Elk Point acquiring gas and crude assets in Alberta

Elk Point Resources Inc., Calgary, has agreed to buy natural gas and light crude assets in the Pembina, Easyford, and Bigoray areas of Alberta for $24.8 million before adjustments of cash flow and interest. Net production from the properties is 2.9 MMcfd gas, 385 b/d of light crude, and 55 b/d of natural gas liquids.

Apr 18th, 2001


By the OGJ Online Staff

HOUSTON, Apr. 18 -- Elk Point Resources Inc., Calgary, has agreed to buy natural gas and light crude assets in the Pembina, Easyford, and Bigoray areas of Alberta for $24.8 million before adjustments of cash flow and interest for 2 months.

Net production from the properties is 2.9 MMcfd gas, 385 b/d of light crude, and 55 b/d of natural gas liquids. The acquisition increases Elk Point's interest in the Bigoray and Lobstick gas units and includes two operated oil units and an operated oil pool under waterflood. The operating costs of the producing assets are $5.20/boe.

The seller was not named. The deal is expected to close Apr. 30.

The Bigoray/Lobstick portion of the acquisition increases Elk Point's interest in the Bigoray Unit No. 1, the Lobstick Gas Unit and several non-unit wells and lands. Elk Point also is acquiring operatorship and working interests of 48% and 50% respectively in the Bigoray Nisku K Unit, and the Bigoray Nisku H Pool along with interests in adjacent lands and wells.

The combined production from the Bigoray/Lobstick portion of the acquisition is 335 b/d of light oil and natural gas liquids and 2.25 MMcfd of associated and non-associated gas.

Elk Point is acquiring interests of 48% and 50% in two oil batteries, a 60% working interest in a compressor station, and an additional 15.9% interest in the non-operated Lobstick gas plant.

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