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EFL Overseas Inc. has acquired additional rights and interests in the Liard basin gas field and facilities located in the Kotaneelee area, Yukon Territory, in Canada, according to a news release.
The company acquired a 30.664% interest in the assets from Nahanni Energy Inc. and some of its wholly owned subsidiaries. The Nahanni purchase follows EFLO's earlier acquisition of Devon Canada’s interest (generally a working interest of 22.989%, with a working interest of 69.337% in one gas well) in the assets, the release said. Upon closing the Nahanni purchase, EFLO became the largest interest holder in the Kotaneelee with a general interest of 53.67% and a working interest of 100% in one gas well.
The assets include 30,188 acres of land, a gas dehydration plant with a 70 MMcf/d capacity, one water disposal well with a 6,000 b/d capacity, one well temporarily shut-in for plant maintenance and two suspended gas wells, flarestack, storage tanks, airstrip, roads, gathering systems, geological data, equipment, and other transportation and camp infrastructure, the release stated.
EFLO paid Nahanni CAD $400,000 (US $398,550) in cash, and 1,614,767 shares of one of its subsidiaries, which are exchangeable on a one-for-one basis for shares of EFLO’s restricted common stock (valued at about CAD $4.1 million; US $4.2 million).
EFLO continues to pursue the acquisition of additional working interests in the assets, according to the release.