Eagle Energy Trust completed the acquisition of a private oil and gas company (Privateco) with petroleum assets in Alberta’s Twining Field, the company said Aug. 20. The transaction closed at about CA$30 million. That amount included Privateco’s debts.
The transaction cost was funded through Eagle’s US$85 million credit facility. The transaction was completed through merging Privateco with a newly incorporated operating subsidiary of Eagle.
Eagle acquired an 80% working interest in petroleum producing properties in Twining Field, in one of the largest Pekisko oil pools in the Western Canadian Sedimentary Basin. Eagle said the acquisition would be immediately accretive. It will increase Eagle's current production by about 750 barrels of oil equivalent per day (boe/d) from 92 gross (48 net) wells. The portfolio contains more than 30 drilling locations. Eagle could have a 3,750 boe/d production rate for more than five years, the company said.
The company said that the undrawn portion of its existing credit facility will exceed CA$40 million.
The company updated its guidance. The 2015 capital budget of CA$16.2 million contains US$9.9 million for U.S. operations and CA$4.2 million for Canadian operations. U.S. operations include Salt Flat in Texas and Hardeman in Texas and Oklahoma.
Eagle Energy Trust is based in Calgary, Alberta.
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