International Petroleum Corp. (IPC) has entered into an settlement to amass Granite Oil Corp. for whole fairness and debt consideration of roughly USD 59 million. The Acquisition contains whole proved plus possible (2P) reserves of 14.zero million barrels of oil equal (MMboe) and 6.2 MMboe of unrisked contingent sources (greatest estimate) as at December 31, 2019. The present manufacturing is roughly 1,500 barrels of oil per day (bopd) with additional potential for gentle oil manufacturing and growth upside, near IPC’s present space of operations in southern Alberta. The Acquisition is comprised of excessive netback, gentle oil producing belongings within the Milk River space of Alberta, positioned southwest of IPC’s present operations within the Suffield space, simply north of the US border. The Assets are presently producing roughly 1,500 bopd of 29° API oil, from an oil pool which extends over a 50 kilometre fairway. The Assets embody present infrastructure to allow the present fuel injection enhanced oil restoration (EOR) scheme, with capability to permit for potential additional discipline growth alternatives. The belongings additionally embody related oil and fuel processing and injection services positioned in proximity to key gross sales factors. Granite reported mixed common wellhead costs of CAD 68.50 per barrel of oil equal (boe) and working netbacks of CAD 34.73 per boe for the third quarter of 2019. On completion of the Acquisition, virtually the entire present manufacturing and infrastructure might be 100% owned and operated by IPC. The Acquisition will complement IPC’s present southeast Alberta operations. The Assets might be managed by IPC’s present Canadian administration workforce, with assist from the operational groups presently working with the Assets. Total 2P reserves attributed to the Assets as at December 31, 2019 are 14.zero MMboe, of which near 100% are gentle oil. The Assets additionally embody 6.2 MMboe of unrisked contingent sources (greatest estimate) as at December 31, 2019. IPC has recognized quite a few drill-ready alternatives that it believes may add additional near-term manufacturing of excessive netback, gentle oil barrels.
(Source and picture: IPC)
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