Blue Sky Global Energy (BGE) has signed a letter of intent with Blue Sky Resources to fully acquire oil and gas assets in British Columbia (BC) and Alberta, Canada.
BGE previously acquired a 50% interest in these assets in May last year.
The total purchase price for the remaining 50% interest in the BC assets and a 50% interest in the Alberta assets is C$19m, contingent on financing and other standard conditions.
BGE will become the operator of the assets upon completion of the transaction.
The acquisition includes premium light oil assets featuring multi-zone production from 64 wells and a 97% composition of light sweet oil with an API gravity between 38 and 41.
These assets are currently yielding around 130 barrels of oil equivalent per day (boepd), mainly from the Keg River and Gilwood formations, spread over roughly 14,000 net continuous acres.
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By GlobalDataA robust seismic coverage is available throughout the asset base and established infrastructure is in place, featuring significant excess oil handling capacity.
The acquisition process is subject to standard due diligence, representations, warranties and closing conditions.
Finalisation of the deal is contingent on approval from the TSX Venture Exchange and successful financing by BGE.
BGE is a publicly traded company with a diverse portfolio of oil and gas assets across Canada, Indonesia and Belize.
In addition to the BC assets, BGE holds a 50% non-operated interest in producing assets in north-eastern BC.
Internationally, the company has a production sharing contract for the Paus Block, spanning approximately 8,214km² offshore East Natuna, Indonesia.
In Belize, BGE has a production sharing agreement covering approximately 180,000 acres in the Corozal Basin, which includes the SBC field discovery.
In November 2024, the Alberta Energy Regulator (AER) mandated a halt on Sunshine Oilsands’ operations, encompassing its wells, facilities and pipelines, due to the company’s consistent non-compliance with regulations.
The AER’s directive also compelled the company to secure a $6.09m deposit to cover potential liabilities associated with its inactive sites and to maintain proper site management.
