Energy income trusts reel in more producing assets

Gary Park

Two more energy trusts have returned from the acquisition trail with assets to bolster their production levels.

Baytex Energy Trust is paying C$109 million in cash to take over an unidentified, privately held oil and gas company that has production in three areas of southern Alberta and Crescent Point Energy Trust has bought light oil producing assets in southeastern Saskatchewan for C$64.5 million.

For Baytex the deal will add 3,200 barrels of oil equivalent per day to its second-quarter output of 34,400 boe per day.

The package includes daily production of 12 million cubic feet of gas and 1,200 barrels of light crude and natural gas liquids.

Reserves are estimated at 5.5 million proved boe and 7.5 million proved plus probable, plus 120,000 acres of undeveloped land.

Crescent Point said its transaction covers three major properties that yield 1,655 barrels per day of light oil and gas liquids and 420,000 cubic feet of gas from proved plus probable reserves of 6.8 million boe. As well, there are 13,000 undeveloped acres.

Oil in place on the properties has been calculated at more than 200 million barrels, with the potential to improve recovery over time.

The acquisition cost is C$37,360 per producing boe and C$9.48 per boe for proved plus probable reserves.

Once the deals close Sept. 30, Crescent Point will raise its production to 9,150 boe per day, 68 percent light oil and 32 percent gas.