Raging River Exploration Inc. closed a Viking consolidation transaction through which it acquired about 24 net sections of land and about 620 barrels of oil equivalent per day (boe/d) of production for Viking light oil.
The acquired land includes wells and facilities in Raging River’s core Kerrobert and Lucky Hills producing areas in southwest Saskatchewan. The land was acquired from an arm's length energy producer for about CA$58 million total cash consideration, Raging River said Nov. 28.
The acquisition also included a strategic natural gas processing facility and associated pipeline network, allowing Raging River to tie in about 1.5 million cubic feet per day (MMcf/d) of natural gas production that is currently not conserved.
Raging River said the infrastructure’s value is CA$5 million, and that it will allow Kerrobert production to expand without the need to construct a natural gas processing facility.
Raging River financed the acquisition through existing credit facilities, and noted that it is currently in final stages of increasing the credit facilities. The banking syndicate assured an increase of the $300 million borrowing base to $400 million. This increase is expected to close in early December.
Northern Blizzard's cash position increased as a result of this sale, to more than CA$100 million.
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