Viking makes another raid in Canada

Calgary-based Viking Energy Royalty Trust is in full expansion mode, making its third acquisition of 2005 by taking over privately held Krang Energy for C$136 million and adding 5,000 barrels of oil equivalent per day.

The purchase comprises 2,500 boe per day of heavy oil and 14 million cubic feet per day of natural gas, almost 110,000 net undeveloped acres and 16.6 million boe of proved and probable reserves, boosting Viking’s projected year-end output to 28,000 boe per day — 50 percent gas, 40 percent light oil and gas liquids and 10 percent heavy oil. The purchase price, which includes assumed debt of C$36 million, reflects a cost of C$32,600 per flowing boe.

—Gary Park