June 16:
CALGARY — Kelt Exploration Ltd. has struck a cash-and-shares deal to buy Alberta Montney oil and gas assets from an unnamed private company, it announced after markets closed Monday.
The company, formed in 2012 from assets not included in the $3.1-billion sale of Celtic Exploration Ltd. to ExxonMobil Corp., said the assets are adjacent to its core producing areas at Pouce Coupe and Spirit River in west central Alberta near Grande Prairie.
Kelt plans to pay the bill with 4.3 million shares worth about $58 million and the balance of $107 million in cash. The deal is expected to close in early July.
The assets currently produce about 2,300 barrels of oil equivalent per day (70 per cent oil), primarily from the Montney formation but including the Halfway and Charlie Lake formations, Kelt reported.
The company said it expects average 2014 production to climb 10 per cent to 12,150 boe/d this year if the purchase goes through. Its oil output would rise to 3,285 barrels per day, up from earlier guidance of 2,575 bpd.
It projects exit volumes of 15,300 boe/d.
Source: http://www.calgaryherald.com/business/Kelt+Exploration+buys+Montney+assets/9944637/story.html?
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