InPlay Oil Acquires Cardium Assets in Alberta
TSX-listed InPlay Oil Corp. announced that it has closed a strategic Cardium formation asset acquisition in the Pembina area of Alberta, for a total consideration of approximately C$1.9 million. The seller of the properties has not been identified.
The assets acquired include approximately 11 sections (7,040 net acres) and drilling inventory of over 30 locations with 23 net tier-1 Extended Reach Horizontal (ERH) locations targeting the Cardium formation in the Pembina area. Current production from the acquired assets averaged approximately 240 barrels of oil equivalent per day (boe/d), of which around 63% is liquids. With drilling activities scheduled to commence in 2021, the net operating income from the assets is approximately 1.0 times (based on 2019 operating income).
“Based on cost reductions, technological improvements in all of our operations, and the strong production results recently in Pembina, this asset immediately competes with our top tier locations in terms of economics and potential strong returns,” the company said in a statement.
Calgary-based InPlay Oil is focused on the development of large oil-in-place pools with low recovery factors, low declines, and long life reserves, primarily targeting the Cardium formation.