Touchstone Exploration Inc. has disposed of its working interest in 1,166 net hectares of undeveloped acreage in the Dodsland area of Saskatchewan for cash consideration of $4.2 million to a Canadian oil and gas producer, according to a news release.
The properties are not currently producing and were assigned net proved reserves of 424,000 barrels of oil equivalent (boe) based on future development costs of $14.9 million and net proved plus probable reserves of 930,000 boe based on future development costs of $26.0 million on Dec. 31, 2014, the release said.
The sale represents about 6% of the company’s total acreage in Canada, all of which is located in Saskatchewan. Following the disposition, Touchstone has interest in 20,354 hectares of developed and undeveloped land in Saskatchewan, including 1,940 hectares offsetting the disposed Dodsland acreage, according to the release.
“This disposition allows us to monetize a small portion of our undeveloped acreage and apply the funds to our higher return projects in Trinidad,” CEO Paul Baay said.
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