|
Montney entices Crew
Fast-moving Canadian junior producer Crew Energy has solidified its position in Western Canada’s Montney resource play by acquiring 48,000 net acres from two unidentified parties for C$105 million, accompanying that deal with a shuffle of other assets.
The Montney purchase is contiguous with existing Crew holdings of about 240,000 acres which contain petroleum initially-in-place of 45 trillion cubic feet of natural gas and 7.8 billion barrels of oil and liquids.
Company Chief Executive Officer Dale Schwed said the purchase fits “like integral pieces of a puzzle ... with Crew’s existing land base” and is part of his company’s long-term plan to allocate capital to the Montney, which is rated as a world-class resource.
The additional Montney assets produce 1,400 barrels of oil equivalent per day (98 percent gas). The deal also includes 80 miles of pipelines.
Sale of Deep basin assets At the same time said it has sold almost 250,000 acres of Deep basin assets in Alberta that produce 6,000 boe per day (75 percent gas) to Long Run Exploration.
That deal involves C$222 million in cash compensation, plus 400 bpd of heavy oil production located in Crew’s operating area in Lloydminster, boosting Long Run’s output to an expected 32,150 boe per day, growing to 34,500 boe per day in 2015.
All of the acquired Montney lands are in what Crew has identified as a “wet” hydrocarbon window, giving the company a net 88,000 acres in the “oil” window and 152,000 net acres in the “wet” gas window.
Production from Crew’s core Septimus area in the Montney increased by 74 percent last year to about 10,500 boe per day and long-term projections point to 35,000 boe per day by 2018.
The Montney formation is viewed as a potential prime source of gas to supply LNG projects.
—Gary Park
| 