Page 12 - NorthAm Week 25 2021

NorthAmOil NEWS IN BRIEF NorthAmOil

UPSTREAM The Astra assets will also contribute Spartan Delta announces
significantly to Surge’s ongoing ESG initiatives
Surge Energy announces of reducing the impact of its operations on strategic acquisitions and
the environment. Astra is in the process of
strategic CAD160mn constructing a 45-kilometer gas gathering provides operational update
infrastructure system to conserve gas at
Southeast Saskatchewan critical facilities in SE Saskatchewan, reducing Spartan Delta is pleased to announce strategic
emissions from several operating fields. The
asset acquisitions in the Gold Creek and
light oil acquisition; new project is estimated to cost approximately Simonette areas. Total consideration for the
$12mn and will be partially funded by Natural
acquisitions is approximately CAD10.1mn in
CAD215mn credit facility; Resources Canada’s Emissions Reduction cash, subject to certain closing adjustments. In
Fund. Additionally, the Astra Assets have a
addition, Spartan is also pleased to provide an
and upward revision to very attractive corporate liability management update on the Company’s operations.
The acquired assets include 33,500 net
rating (LMR) of 5.4, with a very low total
2021 exit rate and 2022 undiscounted decommissioning liability of acres of Montney rights, 100 net Montney
locations, 300 boepd (51% crude oil, 5%
only CAD12.9mn.
production guidance quality, well-positioned 20,200 boepd (85% NGLs, and 44% natural gas) of production
The Transaction will result in a high
behind pipe and associated 100% owned and
Surge Energy and Astra Oil announce that oil and liquids weighted), light and medium operated facilities.
they have entered into an arrangement gravity, intermediate public oil company. SPARTAN DELTA, June 22, 2021
agreement, pursuant to which Surge has SURGE ENERGY AND ASTRA OIL, June 22,
agreed to acquire all of the issued and 2021
outstanding common shares of Astra by MIDSTREAM
way of a statutory arrangement for total Touchstone announces
consideration of approximately CAD160mn. Summit Midstream Partners
The transaction is to be funded by the execution of 10-year lease
issuance of Surge common shares, and the provides updated 2021
assumption of approximately CAD15mn of operatorship agreements
net debt1. financial guidance
The Astra assets include more than Touchstone Exploration announces that we
4,100 boepd (90% liquids) of operated, light have executed ten-year lease operatorship Summit Midstream Partners today
oil production, focused primarily in SE agreements (LOAs) with Heritage Petroleum announced an increase to its full year 2021
Saskatchewan with an operating netback1 for our CO-1, CO-2, WD-4 and WD-8 blocks financial guidance, including a new adjusted
of more than CAD42 per boe at $65 WTI effective January 1, 2021. The LOAs governing EBITDA range of $225mn to $240mn which,
pricing. The transaction is accretive to Surge’s our core legacy oil producing properties at the midpoint, represents an increase of 5.7%
forecast debt-adjusted 2022 cash flow per expire December 31, 2030 and were renewed from the original guidance range of $210mn
share and free cash flow1 per share, and under substantially similar terms to the to $230mn. Management now expects total
adds highly concentrated light oil reserves, previous arrangements. In conjunction with indebtedness as of June 30, 2021, net of
production, land, and operations. The Astra the execution of the LOAs, the company’s unrestricted cash on hand, to be reduced by
Assets are forecast to generate $58.1mn of net board of directors has approved the drilling approximately $82mn, which is nearly 6%
operating income1 over the next 12 months at of one well on each block in the second half lower than the outstanding net debt balance as
$65 WTI (less than current strip pricing), and of 2021. of December 31, 2020.
the company now estimates that its exit 2022 TOUCHSTONE EXPLORATION, June 22, 2021 Heath Deneke, president, chief executive
net debt to annualised Q4 2022 adjusted funds officer and chairman, commented: “Summit’s
flow1 ratio will be approximately 1.0 times. year to date financial and operational results
continue to exceed our original expectations,
largely driven by the outperformance from
wells turned in line year to date, accelerated
customer activity, and continued gains from
expense management initiatives that have
been implemented across the organisation.
While we still expect 2021 to be a trough
year for new well connect activity across
our footprint, we are encouraged by the
strengthening commodity price backdrop and
increasing customer activity now expected
during the second half of the year. As a
result of year to date outperformance and
accelerated well activity, we are increasing our
full year 2021 adjusted EBITDA guidance to
a new range of $225mn to $240mn. We are
maintaining our 2021 capital expenditure

P12 www. NEWSBASE .com Week 25 24•June•2021