Toscana Energy Income Corp. entered into a purchase and sale agreement to acquire producing light oil assets in southern Alberta for CA$15 million in cash, the company said Nov. 25.
This is Toscana’s fourth-largest purchase of large resource oil-in-place reserves in 2015, the company said. It will add to the company’s portfolio of gross overriding royalty interests and liquid-rich natural gas assets.
EORs are underway, and the reserve life index is about 12 years. Per flowing barrel (bbl) of oil, the metric is CA$50,000, and the proved acquisition price is CA$15.67/bbl.
The transaction is subject to customary closing conditions and also to a currently ongoing credit facilities increase, Toscana said. Closing is expected by the end of the year, and the transaction’s effective date is Oct. 1.
Toscana Energy Income Corp. is based in Calgary, Alberta.
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