Page 11 - NorthAmOil Week 03

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NEWS IN BRIEF
NorthAmOil
UPSTREAM
Baytex announces 2019 year-end reserves and preliminary financial and operating results
Baytex Energy Corp. announces its year-end 2019 reserves and 2019 fourth quarter and year-end preliminary unaudited financial and operating results (all amounts are in Canadian dollars unless otherwise noted).
“Our production in 2019 exceeded
the high end of our annual guidance with outstanding capital efficiencies in our development program. As a result, we generated CAD329mn of free cash flow and
a 17% reduction in net debt. Each of our core properties (Eagle Ford, Viking and heavy
oil) contributed substantial asset level free cash flow. We also achieved a strong year of reserves development with proved developed producing reserves increasing 5% with finding & development costs of CAD13.04/boe
and a recycle ratio of 2.3x. We are building
on this momentum in 2020 as we continue
to maximise free cash flow and further strengthen our balance sheet,” commented Ed LaFehr, president and chief executive officer. BAYTEX ENERGY, January 20, 2020
International Petroleum
Corp. announces
acquisition of light oil
assets in Southern Alberta
International Petroleum Corp. is pleased
to announce that it has entered into an agreement to acquire Granite Oil Corp.
for total equity and debt consideration
of approximately $59mn (CAD77.2mn).
The acquisition includes total proved plus probable (2P) reserves of 14.0mn barrels of oil equivalent (mn boe) and 6.2mn boe of unrisked contingent resources (best estimate) as at December 31, 2019. The current production is approximately 1,500 barrels of oil per day (bpd) with further potential for light oil production and development upside, close to IPC’s current area of operations in southern Alberta.
The acquisition is comprised of high netback, light oil producing assets in the Milk River area of Alberta, located southwest of IPC’s existing operations in the Suffield area, just north of the US border. The assets are currently producing approximately 1,500 bpd of 29° API oil, from an oil pool which extends over a 50km fairway. The assets include existing infrastructure to enable the current gas injection enhanced oil recovery (EOR) scheme, with capacity to allow for potential further field development opportunities.
The assets also include associated oil and gas processing and injection facilities located
in proximity to key sales points. Granite reported combined average wellhead prices of CAD68.50 per boe and operating netbacks of CAD34.73 per boe for the third quarter of 2019.
On completion of the acquisition,
almost all of the current production and infrastructure will be 100% owned and operated by IPC. The acquisition will complement IPC’s current southeast Alberta operations. The assets will be managed by IPC’s existing Canadian management team, with support from the operational teams currently working with the assets.
Total 2P reserves attributed to the assets
as at December 31, 2019 are 14.0mn boe, of which close to 100% are light oil. The assets also include 6.2mn boe of unrisked contingent resources (best estimate) as at December 31, 2019. IPC has identified a number of drill- ready opportunities that it believes could add further near-term production of high netback, light oil barrels.
INTERNATIONAL PETROLEUM CORP., January 20, 2020
MIDSTREAM
Steel Reef Announces Closing of CAD500mn acquisition of natural gas infrastructure assets in Williston Basin
Steel Reef Infrastructure Corp. is pleased to advise it has closed its previously announced transaction to purchase certain associated natural gas gathering, processing and sales infrastructure assets in Saskatchewan from Crescent Point Energy Corp. for total cash consideration of CAD500mn.
“Acquiring key natural gas infrastructure assets in leading resource plays provides
Steel Reef with the opportunity to enhance and integrate its full-service gas processing offerings,” said Scott Southward, President and CEO. “This acquisition demonstrates our resolve to provide infrastructure solutions for our customers, while providing value for our shareholders. We thank our customers and investors for their continued support as Steel Reef executes its growth strategy.”
With this acquisition, Steel Reef adds
to its portfolio nine natural gas processing facilities, the associated gathering systems and sales gas pipelines. These processing facilities are comprised of four Viewfield gas plants; the Flat Lake gas plant; Rapdan gas plant, Leitchville gas plant, Dollard gas plant and Glen Ewen gas plant.
Steel Reef raised equity proceeds of CAD175mn from InstarAGF, an existing shareholder, and expanded its credit facilities through National Bank of Canada, Bank of Nova Scotia and ATB Financial to fund the transaction and its future growth. National Bank Financial acted as Steel Reef ’s debt advisor on the transaction.
STEEL REEF INFRASTRUCTURE, January 20, 2020
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