Crew Energy Inc. (Toronto: CR.TO) of Calgary, Alberta is pleased to announce that it has purchased 59 sections of Montney lands in Northeast British Columbia, exercising on a portion of and amending the option it obtained in December 2012 as part of its Septimus/Groundbirch acquisition.
The company on February 28 2013 closed the acquisition of approximately 59 net sections of Option Lands for a purchase price of $20 million. These lands are contiguous or proximal to Crew's existing lands and include approximately 31 net sections in the Altares/Attachie liquids rich gas window and approximately 28 net sections at Goose in the oil window of the over pressured regional Montney complex in Northeast British Columbia.
Crew has maintained the exclusive option to acquire approximately 81 additional net sections of land for $36 million subject to adjustments with such payment to be comprised of cash or a minimum of $10 million cash and the issuance of Crew common shares at Crew's election. The option election period on the remaining lands has been extended from March 15, 2013 to June 3, 2013. This option, if exercised, is expected to close by July 9, 2013. Completion of these transactions furthers the company's strategic consolidation of prospective Montney acreage in the area. This timing is beneficial to Crew as the staged option exercise better fits the company's budgeting profile while allowing the company to further consolidate prospective Montney acreage in the area.
The acquired assets mainly comprise of the vendor's 49% working interest in the Bonavista-operated Wilrich play.
One agreement relates to a promising oil sands water treatment pilot project expected to reduce water use, energy consumption and greenhouse gas emissions.