Page 12 - NorthAmOil Week 24 2021

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UPSTREAM the LNG Canada facility. core operating areas: (1) Cold Lake thermal
It is the first of two MCHE units built by oil; (2) Montney condensate-rich gas; and
Earthstone Energy Linde for the LNG Canada project; the second (3) Saskatchewan enhanced oil recovery.
MCHE is expected to arrive later this year,
Strathcona has an industry-leading full-cycle
announces Eagle Ford bolt- along with two more precoolers. WTI breakeven of ~US$35/bbl, a ~10% base
Often described as the “heart” of an LNG
oil decline rate, and a large infrastructure
on acquisitions of 1,150 facility, MCHEs are made to liquefy natural footprint that provides optionality to grow
gas. Gas enters an MCHE near its base and
production organically.
boepd exits at its top in a sub-cooled, liquefied state, on the health and safety of its employees and
WEF and Strathcona place a high priority
at -160 Celsius. The liquefied gas is then piped
Earthstone Energy today announced that it to a storage tank, and from there, it is loaded on the company’s environmental stewardship.
has acquired working interests in assets it onto specialised carriers for ocean transport. Strathcona has an innovative executive
operates located in southern Gonzales County, Precoolers are also integral to the process, compensation scheme that ties 25% of all
Texas from four separate sellers. The aggregate increasing efficiencies during different incentive compensation to annual health,
purchase price of the Eagle Ford Acquisitions stages of gas liquification. All three pieces of safety, and environmental goals, a level that
was approximately $48mn in cash. Earthstone infrastructure are precision engineered from is approximately 10x higher than the average
funded the Eagle Ford acquisitions with cash aluminium and are pressure tested prior to public exploration and production company.
on hand and borrowings under its senior delivery. The combined business’s greenhouse
secured revolving credit facility. The effective LNG CANADA, June 14, 2021 gas emission intensity per barrel of oil is
date of the Eagle Ford Acquisitions was significantly below the world average.
April 1, 2021. The largest of the acquisition WATEROUS ENERGY FUND, June 11, 2021
components, comprised of working MOVES
interests owned by two affiliates of Titanium
Exploration Partners, constituted the majority Waterous Energy ENERGY TRANSITION
of the total consideration.
EARTHSTONE ENERGY, June 14, 2021 Fund announces the ARC Financial announces
amalgamation of expanded investment
DOWNSTREAM
Main cryogenic heat Strathcona Resources and mandate for ARC Energy
Fund 9
Osum Oil Sands and the
exchanger and precoolers closing of a new CAD1.0bn Canada’s largest energy-focused private equity
arrive at the LNG Canada covenant-based credit manager, ARC Financial, announced today
that it is expanding and diversifying the
site in Kitimat investment mandate of its most recent fund,
ARC Energy Fund 9, to include companies
Three towering pieces of equipment critical to facility pursuing energy transition.
the gas liquification process have arrived at the Waterous Energy Fund (WEF) today With over 30 years of experience investing
LNG Canada site in Kitimat, as construction announced the closing of the amalgamation across the energy spectrum, ARC and its
activities progress through the project’s “going of its two portfolio companies, Strathcona Research Institute have developed a unique
vertical” stage, with other key milestones on Resources and Osum Oil Sands. The method for understanding the landscape for
the horizon. amalgamated entity will continue in business energy transitions and have a track record
Crews spent the week of June 7 carefully under the name Strathcona Resources and of investing in renewables and clean energy
offloading a 345-tonne main cryogenic heat will remain 100% owned by WEF, WEF technology companies dating back to 2000.
exchanger (MCHE) and two precooler units, co-investors and Strathcona employees. ARC is currently engaged in evaluating
which weigh 308 tonnes and 284 tonnes Strathcona is the product of nine separate a number of opportunities in biofuels,
respectively, from a cargo ship docked at the transactions completed by WEF since 2017, renewables development, energy storage
LNG Canada project’s new material offloading including three take-private transactions and and carbon capture, utilisation and storage
facility (MOF) in Kitimat Harbour. two bankruptcy situations. (CCUS), and also anticipates raising capital
The equipment was then placed on large, Strathcona will have ~80,000 boepd (75% for a dedicated energy transition-focused fund
self-propelled modular transporters, which oil and liquids) of production, 1.7bn boe of in the future.
will slowly move the pieces along the project proved plus-probable (2P) reserves, and a “In addition to our existing focus
site’s new three-kilometre-long haul road to ~60-year reserve life index. As measured by on traditional oil and gas, our investing
the main construction area in the coming 2P reserves, Strathcona is the largest private- activities are broadening to again capture
days, where they will soon be connected to equity owned oil producer in North America companies that emphasise decarbonisation
other pieces of LNG infrastructure. and the 6th largest oil-weighted company in and environmental sustainability,” said Brian
The largest of the three new pieces of Canada. Strathcona is comprised of long-life, Boulanger, CEO of ARC Financial Corp. “We
equipment, the MCHE is approximately 50 low-decline, high free cash flow oil assets view energy transition as an expansion of
metres in length. Once installed vertically, it that are naturally hedged with natural gas the opportunity set we know well, with the
will be among the most visible components at and condensate production, across three potential for strong returns across a more

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