Pacific Oil and Gas (PO&G) has signed an agreement to purchase all of the issued and outstanding shares of exploration and production company Canbriam Energy.
The cash transaction’s value has not been disclosed.
Canbriam is involved in liquids-rich natural gas development in the Altares and Kobes Montney regions of north-east British Columbia, Canada.
The company’s asset base in the Montney currently produces around 200 million cubic feet per day of natural gas, including 6,000bpd of associated natural gas liquids.
The proposed acquisition is expected to create a well-capitalised Canadian growth platform positioned to develop the Montney assets.
Canbriam Energy president and CEO Paul Myers said: “This transaction supports the ongoing development of our prolific Montney assets and aligns us for future natural gas export.”
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By GlobalDataAccording to the agreement, PO&G will receive Canbriam’s wholly owned and operated natural gas processing plants and water handling infrastructure.
Canbriam is implementing technology to improve its environmental performance. To that effect, the company has invested in water sourcing, distribution and recycling infrastructure in order to minimise trucking requirements across its operations.
The measures will enable the company to minimise greenhouse gases (GHG) and fugitive emissions across its operations.
PO&G president Ratnesh Bedi said: “Canbriam is one of the lowest cost producers in the Montney and we look forward to partnering with Paul Myers and the entire team. We welcome the opportunity to work in Canada and produce some of the cleanest natural gas, held to the highest environmental and technical standards in the world, and sharing that resource to offset GHG emissions around the globe.”
The transaction is subject to closing conditions, including regulatory approvals, and is expected to be completed prior to 1 July.
PO&G is developing the planned liquefied natural gas (LNG) export-terminal Woodfibre LNG in Canada. The project is currently in the pre-construction phase.
The company will use renewable hydroelectricity to power the Woodfibre LNG facility.
Last September, PO&G’s subsidiary Woodfibre LNG Export reached an agreement with CNOOC Gas and Power Trading & Marketing for the potential offtake of LNG.
