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Quattro Exploration and Production Ltd. has entered an arms-length agreement with an Alberta-based oil and gas exploration and production company to acquire 100% of one conventional heavy oil field and a material interest in one gas field and various minor oil and gas interests within two core areas of northern and east central Alberta for CDN $3.35 million (US $3.38 million), the company announced.
The acquisition is expected to close on or before Oct. 12 and will be funded through a mix of equity and debt.
The fields were previously producing 108 b/d of oil and liquids and 193 boe/d of gas. Quattro has identified that an additional 100 boe/d of oil and gas production on the subject lands that has remained shut in, awaiting remediation for the past 12 months. Through the acquisition, Quattro is acquiring low-decline, high-quality oil assets with a substantial land base, infrastructure, and processing facilities. The oil assets are 100% working interests and will be operated by Quattro while the main gas properties vary from 100% operated to high non-operated working interests.
Quattro expects to complete the necessary due diligence during the next three weeks customary to a transaction of this nature. Following closing, Quattro intends to execute a development drilling program consisting of 12-16 slant wells in the next 12 months from a series of three pads and an all-weather access road developed in winter 2012 by the current owner, with a further 120 wells proposed on the adjacent 18,160 acres of exploratory lands.