Petro Viking Energy Acquires Additional Mineral Rights in West Central Alberta
CSE-listed Petro Viking Energy Inc. has entered into an agreement with an undisclosed seller to acquire 3,840 net acres of mineral rights located in West Central Alberta at a gross purchase price of CAD285 per acre, amounting to a total purchase consideration of approximately C$1.1 million. The deal increases the company’s land position in West Central Alberta by 300%.
The acquired assets include 7,680 gross (3,840 net) acres of mineral rights as well as 10 liquids rich natural gas drilling locations located in West Central Alberta. The acreage primarily targets the Belly River, Lower Mannville, Viking, Ellerslie, Duvernay, and Wabamun formations, and the acreage located over the oil window of the Duvernay formation is expected to have long-duration linear flow rate wells.
Total proved (1P) reserves attributable to the acquired assets as of December 31st, 2020 was 1.0 million barrels of oil equivalent (MMboe), and estimated 1P reserves as of early 2021 stood at more than 2.0 MMboe.
“The Company is pleased to have been able to act on this opportunity to increase the production from Liquid Rich Natural Gas from the Belly River, Lower Mannville, Viking and Wabamun Formations, all being proven reservoirs in the region processing both quality and thickness comparable to on-trend wells that have produced between 1.0 – 3.5 Bcf per well in the area. In addition to this, the acquired lands are located over the Oil window of the Duvernay Formation where it is expected to have long-duration linear flow rate wells,” the company stated in a press release.