Canadian trust tackles debt

In a debt-trimming mission, True Energy Trust has unloaded 3,000 barrels of oil equivalent per day (75 percent heavy oil) and natural gas properties to Baytex Energy Trust for C$93 million.

The heavy oil properties are in two areas of southwest Saskatchewan. Interests in almost 2,000 acres of west-central Alberta properties are also included in the deal.

The package includes 5.3 million cubic feet per day of natural gas production, seismic data and 63,000 net acres of undeveloped mineral leases, True said.

In a separate transaction, True sold 145 barrels of oil equivalent per day in central Alberta for C$4.75 million. Following closure of the sales, expected by July 30, True’s total net debt is expected to be about C$110 million and its production is forecast at 6,500 barrels of oil equivalent per day, comprising 32 million cubic feet per day of gas and 1,230 bpd of light and medium oil.

It will also hold 275,000 net undeveloped acres and 320 drilling locations.

Baytex expects to boost its output to 43,000 barrels of oil equivalent per day.

It said the Saskatchewan heavy oil assets hold many opportunities for cold in-fill drilling and steam-assisted development.

—Gary Park