Spartan Energy Corp. entered into a definitive agreement to acquire Wyatt Oil + Gas Inc., which has light oil assets in southeast Saskatchewan, the company said May 19.

The acquisition’s total consideration is about CA$77 million, comprised of the issuance of about 11.4 million Spartan shares and the assumption of about CA$42 million of net debt.

Subject to the completion of certain conditions, including the approval of the Wyatt shareholders and the approval of the Toronto Stock Exchange, the acquisition is expected to be completed before June 30, the company said.

There are about 1,330 barrels of oil equivalent per day (boe/d)--76% light oil and liquids—being produced in the Alameda and Elcott areas of southeast Saskatchewan.

An additional 2,300 cubic feet per day of natural gas and 130 bbl/d of NGL might be added in October once currently flared gas volumes are tied in to infrastructure, the company said.

The assets are comprised of about 45 net sections of land prospective for both Midale and Frobisher light oil, and are complementary to Spartan's existing southeast Saskatchewan core areas.

Spartan has initially identified more than 177 gross (162 net) Mississippian drilling locations across the asset base, comprised of 79 gross (75 net) frack Midale locations and 98 gross (87 net) open-hole Midale and Frobisher locations.

The Alameda asset includes 29 net contiguous sections of operated lands with a 97% working interest. The Alameda property has large original oil in place with a current recovery factor of about 1.3%.

Wyatt began a 3.5 section waterflood project on the lands, and early results are encouraging; Spartan said there could be significant unbooked waterflood upside associated with the assets, and anticipates that primary recovery factors of 9% can be achieved in the Alameda pool, with up to 18% recovery through using waterflood.

The acquisition includes all infrastructure required to accommodate future production growth, as Wyatt has invested more than CA$22 million in facilities for the Alameda property, including 16 Mbbl/d of fluid capacity, field headers and 75 kilometers of emulsion, gas and injection flowlines.

National Bank Financial Inc. is Wyatt’s financial adviser.

Spartan Energy Corp. is based in Calgary, Alberta.