Junex and Cuda Energy have completed their previously announced business collaboration to form a combined entity named Cuda Oil and Gas.
Following a plan of arrangement under the Business Corporations Act, the decision was initially announced in June.
Concurrent with the arrangement, New Cuda also completed the earlier acquisition of a light oil asset in the Powder River Basin in Wyoming for $37m.
The arrangement secured approval from 98.9% of those Junex shareholders that voted and 100% of Cuda shareholders that voted at their respective meetings on 2 August.
It was subsequently approved by the Superior Court of Québec.
The Wyoming Asset comprises a 27.75% interest in the 25,000 (~7,000 net) acre Barron Flats (Deep) Unit in the Powder River Basin. It produces high netback light sweet oil entirely from the Shannon formation.
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By GlobalDataThe assets will be developed through vertical development drilling, along with four additional deeper zones where several large independents in the US have licensed 5,000 horizontal wells.
They are currently developing the zones by the way of horizontal development and achieving initial 30-day rates more than 1,000bbl/d.
New Cuda plans to participate with the Wyoming Assets vendor to jointly develop, construct, own and operate an oil sales pipeline connecting to regional infrastructure in addition to a high-pressure natural gas system.
This would facilitate gas volumes that are needed to implement the miscible gas flood into the Shannon field known as Midstream Facilities.
The Midstream Facilities will be 33.3% owned by New Cuda and 66.6% by the vendor and operated by the vendor’s affiliate.