This acquisition from an intermediate oil producer includes a 100% working interest in 19 sections (13,340 acres) of land, two sections (1,280 acres) of gross overriding royalty lands, about 20 sections of proprietary 3D seismic and 125 line km of proprietary 2D seismic.
There are 38 wellbores on the property, and oil is produced to single well batteries (tanks) and natural gas production (non-associated) is tied into about 30km of natural gas pipeline and infrastructure included in the transaction.
The current production from the property is about 65% heavy oil (12 degrees API) with 35% being non-associated sweet gas.
The existing oil pool being acquired (McLaren formation) has cumulative production of about 1.6 mmstboe.
The transaction is expected to close by the end of November 2011.
