Page 11 - NorthAmOil Week 40 2021

NorthAmOil NEWS IN BRIEF NorthAmOil

UPSTREAM net production is approximately 14,000 issuance of approximately 11.2mn Surge
boepd. common shares, and the assumption of
Whitecap Resources stated priorities of maintaining balance sheet approximately CAD3mn of net debt1,
The GORR sale aligns with Whitecap’s
inclusive of transaction costs.
announces sale of Weyburn strength and increasing return of capital to Astra Oil, Surge management strategically
With the company’s recent acquisition of
shareholders. The GORR sale allows Whitecap
royalty and achieves debt to accelerate the achievement of our near- targeted SE Saskatchewan as a new area
term net debt target of CAD1.2bn and reach
of growth based on its high value light oil
reduction target our long-term net debt target of CAD1.0bn netbacks, low-cost production efficiencies,
by year-end 2021 to enhance total shareholder
and quick drilling payouts. Surge’s operational
Whitecap Resources is pleased to announce returns. track record of execution in SE Saskatchewan,
that it has entered into a definitive agreement In achieving CAD1.0bn of net debt by year combined with its proven in-house technical
with Topaz Energy Corp. for the sale of a end 2021, Whitecap retains CAD1.0bn of expertise, make this an exciting new core area
newly formed 5% gross overriding royalty liquidity on our credit facility and a forecasted for the company.
(GORR) on its working interest in the debt to EBITDA ratio of 1.3 times at $45 per The Fire Sky assets are currently producing
Weyburn CO2 Unit for cash proceeds of barrel WTI and 0.7 times at $70 per barrel more than 1,500 boepd (>95% liquids) of
CAD188mn. The transaction is expected to WTI, providing significant financial flexibility operated, light oil, focused in Surge’s SE
close on or before October 31, 2021. and long-term sustainability. Saskatchewan core area, with an operating
Following the completion of the GORR WHITECAP RESOURCES, October 05, 2021 netback1 of more than CAD52 per boe at $70
sale, Whitecap will retain its operated 65.3% WTI pricing – which is now less than 2022
working interest ownership in the Weyburn Surge Energy announces average strip pricing.
Unit which remains a core, strategic asset Following the transaction, Surge now
within our portfolio. The Weyburn Unit CAD58mn Southeast forecasts average production in 2022 of 21,500
is the single largest anthropogenic carbon boepd (86% liquids) of primarily light and
sequestration project in the world and has Saskatchewan core area medium gravity crude oil.
sequestered over 36mn tonnes of CO2 since SURGE ENERGY, October 04, 2021
the project’s first CO2 injection in 2000. The light oil acquisition; and an
project is expected to continue to sequester Earthstone Energy
carbon at a rate of approximately 2mn tonnes upward revision to 2021 exit
per year, driving Whitecap’s net negative announces bolt-on
carbon footprint after accounting for Scope 1 rate and 2022 production
and 2 emissions. With a 100% oil and natural acquisition
gas liquids weighting and less than 3% base guidance
decline rate, the profitability of the Weyburn Earthstone Energy today announced that
asset is robust and after the sale of the GORR, Surge Energy and Fire Sky Energy announce it has entered into definitive agreements
it will continue to generate significant free that they have entered into an amalgamation to acquire privately held operated assets
funds flow for Whitecap, with a free funds agreement, pursuant to which Surge has located in the Midland Basin from two sellers
flow break-even price of approximately $35 agreed to acquire all of the issued and unaffiliated with Earthstone. The aggregate
per barrel WTI based on preliminary 2022 outstanding common shares of Fire Sky by purchase price of the bolt-on acquisition is
capital plans. Production volumes from the way of a statutory amalgamation for total approximately $73.2mn consisting of $49.2mn
previously announced unplanned downtime consideration of approximately CAD58mn. in cash, subject to customary purchase price
at Weyburn are now back online and current The transaction is to be funded by the adjustments, and approximately 2.6mn shares
of Earthstone’s Class A common stock valued
at $24.0mn based on a closing share price of
$9.20 on September 30, 2021. The bolt-on
acquisition is expected to close by the middle
of the fourth quarter of 2021 with an effective
date of July 1, 2021.
EARTHSTONE ENERGY, October 04, 2021

MIDSTREAM
United Energy announces

major acquisition update

United Energy announces it has signed a
purchase agreement for a 140-mile natural
gas pipeline in Wagoner County, Oklahoma,
formerly owned by Red Fork Energy. This
asset has 140+ miles of 3” to 16” transmission

Week 40 07•October•2021 www. NEWSBASE .com P11