The acquisition is consistent with TriOil’s focus on large oil-in-place assets with repeatable, low risk horizontal drilling and multi-stage fracture completion opportunities.
The acquired assets in the Lochend Cardium light oil resource play include 100boepd of Cardium light oil and natural gas production, 14 net (23 gross) sections of prospective Cardium rights, over 40 net horizontal Cardium light oil locations, operatorship and 99% ownership of a 5mmcf/d gas plant and operatorship and majority ownership of 60km of key pipeline infrastructure.
The total cash purchase price is $8m, subject to closing price adjustments, and the acquisition is expected to close in late August.
TriOil began its initial four well (2.65 net) horizontal Cardium drilling program at Lochend in August.
The company’s first horizontal Cardium well (55% working interest) at Lochend has been successfully drilled and is currently waiting on a multi-stage fracture completion.
The remaining three wells in this program are being drilled in succession with the same drilling rig and the second well in the program is expected to spud this week.