Spartan Delta Acquires Additional Montney Assets
TSX-V listed Spartan Delta Corp. has signed three separate definitive agreements with undisclosed sellers to acquire certain Montney play assets in Alberta, for a total consideration of approximately C$7.1 million in cash and stock.
The total acquisition price comprises a cash consideration of C$900,000, plus the issuance of about 2,000,000 Spartan Delta shares at a deemed price of approximately C$3.1 per share. In addition, Spartan will also assume certain abandonment liabilities related to the assets.
The assets acquired cover 28 sections (17,920 acres) targeting the Lower Triassic Montney formation in Central Alberta. Current production from the acreage averages 105 barrels of oil equivalent per day (boe/d), of which 60% is natural gas.
Spartan stated that of the three agreements, it has closed one acquisition, and the other two remain subject to customary closing conditions. The two remaining transactions are expected to close on January 15th, 2021.
Calgary-based Spartan is engaged in E&P operations in Canada’s Western Sedimentary Basin, and currently holds assets in the Peace River Arch region and Central Alberta.