Crew Energy Inc. said Sept. 9 it closed a C$50 million (US$38 million) sale of a minor portion of its Lloydminster, Alberta heavy oil assets to an undisclosed buyer.
The Calgary, Alberta-based company said the transaction provides significant value with minor impact to the its current production, reserves and cash flow.
The Lloydminster assets sold include 11,670 net acres of petroleum and natural gas rights. The sale represents 11.8% of Crew's total heavy oil acreage.
Current production is about 225 barrels of oil equivalent per day (boe/d). This is 6% of the company's current heavy oil production. Total proved plus probable (2P) reserves of the sold assest is 1 MMboe.
The proceeds from the transaction have initially been used to pay down the company's credit facility. This will support the ongoing delineation and development of its northeast British Columbia Montney assets, the company said.
Crew's total net debt outstanding at year-end 2015 is projected to be about C$210 million.
Regarding operations, Crew said it brought the new West Septimus facility onstream in early August as planned. The facility is currently operating at half capacity as budgeted, processing about 30 million cubic feet per day (MMcf/d) from only six of the 21 wells now drilled in the area. They have been on production for more than 30 days.
The full-year 2015 net capital budget remains consistent with original guidance at C$185 million.The company said it now plans to drill 22 horizontal Montney wells, 15 of which will be completed by year-end 2015. Originally the company planned to drill 10 wells.
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