Completed on 18 July 2012, the acquisition includes Devon’s working interest of 22.989%, with a working interest of 69.337% in one producing gas well in the KPG, which covers 30,188 gross acres, and includes a gas dehydration plant, one gas well producing approximately 3.5 MMCFD.
Also included are one water disposal well, two suspended gas wells, fully developed gas gathering, sales and delivery infrastructure, airstrip, roads, flarestack, storage tanks, barge dock and permanent camp facilities.
EFLO Chairman Henry Aldorf said the acquisition provides a platform for development of the company as an important supplier of low-cost clean energy.
”The Kotaneelee gas field, with its conventional and important unconventional resource development opportunities, combined with a 70 MMCFD underutilized gas plant and infrastructure, provide EFLO’s operations significant scale and upside," Aldorf added.
EFLO has also signed a letter of intent with Nahanni Energy earlier this month, to purchase an additional 30.664% working interest in KGP, for CAD$400,000 ($393,000) in cash, and CAD$4,100,000 ($4,030,000) payable in its restricted common stock shares.
