Canada’s ARC Resources Ltd. said on July 29 that late in the second quarter of 2016, it added to its working interest ownership in the Pembina Cardium through a 2,200 barrels of oil equivalent per day (boe/d) transaction.

The company also entered into a separate binding sales agreement to acquire an additional 800 boe/d of Pembina assets; this transaction is expected to close in the middle of third-quarter 2016.

The combined acquisitions will add about 3 Mboe/d of light high-netback production, about 85% liquids, which will result in an annual volume impact in 2016 of about 1,400 boe/d of production.

The combined acquisitions totaled $148 million for a flowing boe metric of $48,000 per boe per day, and a proved developed producing reserve metric of $10.50/boe based on internal estimates.

ARC said that the increased average working interest, and resulting control over the acquired assets, increases the company’s ability to efficiently develop Pembina's considerable drilling inventory.

During the second quarter, ARC continued its noncore asset divestment program, divesting the remainder of low-netback operated shallow gas assets in southern Alberta.

ARC's Pembina Cardium assets continue to provide low-decline, high-quality light oil production and generate competitive operating netbacks.

Pembina production averaged about 8,910 boe/d (about 80% light oil and liquids) in the second quarter of 2016, 11% lower than during the first quarter of 2016.

During the second quarter, ARC achieved production of 117,695 boe/d per day, which was 5% lower than first-quarter 2016’s.

Second-quarter 2016 capex, before land and net property acquisitions and dispositions, totaled $112.6 million. This was about 90% higher than first-quarter 2016’s capex. Capital investment was focused primarily on ARC's Montney assets in northeast British Columbia, where 10 operated wells--six oil and four natural gas—were drilled.

ARC closed the quarter with a strong balance sheet including $969.3 million of net debt outstanding, which was $15.8 million lower than at December 31, 2015.

ARC's board of directors approved an increase to ARC's capital program to $450 million, before land and net property acquisitions and dispositions, up from the previously announced $390 million.