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Twoco Petroleums Ltd. has entered an agreement to sell 70% of its working interests in the company’s Sparky heavy oil property in the Warspite area of Alberta to an oil and gas investment fund based in Seoul, Korea, for C $28 million (US $28.8 million).
The sale is effective June 1 and is expected to close on or about Oct. 17 subject to, among other things, finalizing the formation of the fund by Oct. 12 and receipt of all necessary regulatory approvals, Twoco reported.
The agreement includes the sale of Twoco’s working interests in its existing five producing horizontal oil wells, related tangible equipment, pipelines, and miscellaneous interests. The company’s current production from the heavy oil property is approximately 150 b/d of oil and natural gas liquids. Following the closing, Twoco will remain as the operator of the Sparky heavy oil property pursuant to an industry standard joint operating agreement.