Page 8 - NorthAmOil Week 38 2021

NorthAmOil INVESTMENT NorthAmOil

Laredo snaps up Permian

acreage from Pioneer

US LAREDO Petroleum has signed a sale and pur-
chase agreement (SPA) to acquire around 20,000
net acres (80.94 square km) in the Permian Basin
from Pioneer Natural Resources.
Laredo said on September 19 that it had
agreed to pay around $230mn in cash and shares,
subject to closing price adjustments, for land that
lies directly adjacent to the company’s existing
western Glasscock County leasehold. Pioneer
will receive $160mn in cash as well as 959,691
shares of Laredo common equity.
Once the deal is finalised, which is expected
to occur in October, Laredo’s core development
area in western Glasscock County will amount
to around 22,200 net acres (89.84 square km).
Pioneer’s acreage is currently producing around
4,400 barrels of oil equivalent per day (boepd), 59%
of which is oil, from around 135 gross operated oil-
weighted locations with an average lateral length of
9,700 feet (2,957 metres).
Laredo already holds more than 140,000
gross acres (566.56 square km) in the Permian Pigott added: “Seven years of inventory
Basin, of which 85% is held by production across these core areas will enhance our ability
(HBP). to deliver sustainable, long-term free cash flow
The developer said the deal was expected generation and to rapidly deleverage.”
to expand its oil-weighted inventory by 50%, Laredo announced on July 1 that it had closed
extending development runway to approxi- its acquisition of Sabalo Energy’s oil-weighted
mately seven years at current activity levels. Howard County leasehold as well as its par-
“Upon closing this transaction, we will have tial divestment of certain legacy gas-weighted
acquired more than 55,000 net acres [222.58 proven developed producing reserves to Sixth
square km] of highly productive, oil-weighted Street Partners.
inventory in Howard and western Glasscock Laredo paid an aggregate consideration of
counties in just two years, fundamentally trans- $606mn in cash and 2.507mn shares of Laredo’s
forming Laredo,” Laredo president and CEO, common stock, while receiving $405mn in cash
Jason Pigott, said. for the sale to Sixth Street.™

GAC acquires second

Alberta SAGD project

CANADA GREENFIRE Acquisition Corp. (GAC) has GAC estimates that the combined production
successfully acquired its second steam-assisted from GAC’s portfolio will be more than 20,000
gravity drainage (SAGD) oil sands project in bpd in the near term and in excess of 30,000
northern Alberta. bpd in the mid-term. Hangingstone Expansion,
GAC said on September 20 that it had exe- which has been producing 20,000 barrels per
cuted a sale and purchase agreement (SPA) day from a 35,000 bpd capacity, lies immediately
to acquire all of JACOS’ shares, gaining a 75% adjacent to GAC’s recently acquired Greenfire
working interest and operatorship of the Hang- Hangingstone asset. GAC said both assets share
ingstone Expansion site. JACOS is a 75:25 joint the same tier-one oil sands reservoir.
venture between Japan Petroleum Exploration GAC said it expects to leverage its experi-
(JAPEX) and Nexen. ence Greenfire Hangingstone as well as the site’s

P8 www. NEWSBASE .com Week 38 23•September•2021