Orleans Energy Ltd., Calgary, (Toronto: OEX) says it has sold non-core assets in east-central Alberta to an unnamed buyer for C$18.19 million.
The assets contain estimated proved reserves of 939,000 barrels of oil equivalent and proved plus probable reserves of 2.1 million barrels of oil equivalent. Production is approximately 440 barrels of oil equivalent per day (51% gas). The assets, which comprise 7,176 net acres of undeveloped land, have an operating cost of approximately C$21 per barrel of oil equivalent, with 122 net wellbores.
The deal will consolidate Orleans' unconventional asset base to west-central Alberta and the Peace River Arch, where the company has 68 producing wellbores with an average working interest of approximately 80% and will enable Orleans to continue its Montney development at Kaybob.
The deal reduces the company's debt to approximately $18 million while also decreasing its bank facility by C$7 million to C$53 million.
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