Harvard Resources to Acquire Saskatchewan Assets from i3 Energy
AIM-listed i3 Energy Plc has entered into an agreement with Calgary-based Harvard Resources Inc. for the sale of certain producing and non-producing petroleum assets in Saskatchewan for a total cash consideration of C$45 million (approximately US$33.8 million), subject to customary adjustments.
In July this year, i3 Energy entered into a separate agreement with Gain Energy Ltd. to acquire 100% of its producing and non-producing petroleum assets in Alberta and Saskatchewan for C$80 million. The deal with Harvard Resources will include assets that are currently held by Gain Energy Ltd.
The assets include 2,000 net developed acres and 589 non-operated wells of low decline, light oil producing properties in Saskatchewan, along with an interest in the oil-producing Weyburn Unit, the fourth-largest carbon capture, utilization and storage (CCUS) project in the world. The assets have proved reserves of approximately 4.9 million barrels of oil equivalent (MMboe) as of December 31st, 2019, all of which were in the proved developed category. Average daily production from the assets during Q4-2019 was approximately 1,136 boe/d.
“Following completion of the Gain assets acquisition we will focus on production optimisation and cost reduction opportunities in this extensive asset base, in parallel with the ongoing execution of our strategy to rapidly grow production, targeting accretive, material, and complementary assets,” said Majid Shafiq, i3 Energy’s CEO.
The transaction is subject to customary closing conditions, including the completion of the transaction between i3 Energy and Gain Energy.