Energy trust buys B.C. property

A northern British Columbia oil property pumping 5,200 barrels per day of medium-gravity crude has been snapped up by Harvest Energy Trust for C$260 million.

If the deal closes as anticipated on Aug. 2, Harvest’s output will climb to 40,000 barrels of oil equivalent per day and its capital budget for 2005 will increase to C$100 million.

The acquisition, from an unnamed seller, includes 19.8 million boe of proved-plus-probable reserves, of which 6 percent is natural gas, and 57,000 undeveloped acres.

The purchase price works out at C$46,200 per flowing barrel of production.

Harvest also announced that new price hedging agreements will eliminate the variability of heavy-oil differentials on prices received for its 10,000 boe per day of heavy oil.

—Gary Park