Acquisitions And Dispositions
Recent Acquisitions and Dispositions
December 14th, 2009
ARC announces an agreement to purchase, directly and indirectly, all of the units of a general partnership formed to hold oil and gas assets in Ante Creek and other areas of northern Alberta for $180 million in cash consideration prior to normal closing adjustments. The acquisition will increase ARC’s current production by approximately 2,000 boe per day and its undeveloped land holdings by approximately 20 per cent while adding an estimated 12.6 million boe of proved plus probable reserves. To download a pdf version please click here.
January 8th, 2008
ARC Energy Trust announces two new gas discoveries and a large land acquisition in the Dawson area. To download a pdf version please click here.
September 13th, 2007
On September 13, 2007, ARC closed an acquisition of substantially all of the interest of Flagship Energy Inc. in South East Saskatchewan. The acquisition adds approximately 450 boe/d and over 1.1 million boe of reserves to ARC as well as adding to our inventory of future drilling opportunities. The properties acquired are in close proximity to our current holdings. The key properties in the acqusition are Buffalo Head, Lost Horse Hills, Nottingham, Sherwood, Storthoaks, Willmar and Torquay.
October 2nd, 2006
On October 2, 2006, ARC completed its first property acquisition in southwest Manitoba for total consideration of $74 million. Current production from the properties is approximately 785 boe per day. Manitoba offers primarily oil-based properties at shallow depths, similar to ARC’s production in southeast Saskatchewan.
December 6th, 2005
On December 6th, 2005 ARC announced that it has entered into agreements to purchase shares in wholly owned subsidiary companies of Imperial Oil Resources and ExxonMobil Canada Energy that own a 45.57 per cent working interest in the North Pembina Cardium Unit # 1 (“NPCU”) and of Imperial Oil Resources, that own a principal interest in the Redwater oil field in central Alberta. This $462 million acquisition is expected to close in mid December.
John Dielwart, ARC’s President and CEO, said, “These “legacy” assets are two of the largest and highest quality light oil fields ever discovered in western Canada. To date on a gross basis, over one billion barrels of oil have been recovered from these fields, but ARC estimates that there are still significant reserves remaining in the ground. This acquisition clearly meets our objectives of adding long-term, stable producing assets to our existing high quality asset base. With an estimated 40.0 million barrels of proved plus probable working interest, these assets have a 20 year reserve life index and will increase our total reserves by over 16 per cent. Although these fields currently have high operating costs and Redwater has a material abandonment liability, the big prize is the remaining oil in the reservoir that has not been included in our reserve assessment. Our task will be to translate that potential into value for our unitholders.”
To learn more please click here to download a PDF version of the acquisition news release.