Arsenal Energy has entered into an agreement to acquire certain oil-producing properties in eastern Alberta, Canada, for $40.25m.
The properties produce medium gravity oil and currently have a production capacity of about 1,500boe/d, and include 1.8 million boe of proved reserves and 2.5 million boe of proved plus probable reserves.
On completion of the transaction, the firm’s production from its Princess/Provost areas will increase from about 920boe/d to about 1,850boe/d.
Arsenal will also acquire 580boe/d of gas production in the Desan area in north-east British Columbia.
The company will fund the acquisition entirely with bank debt within its existing credit facility.
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