Spartan Delta Makes Three Strategic Acquisitions in Alberta
TSX-V listed Spartan Delta Corp. has entered into three separate agreements to acquire certain oil & gas assets in Alberta, for a combined consideration of approximately C$147.9 million, including certain debt, working capital and other adjustments.
The assets acquired include approximately 235,393 net acres of land in the Gold Creek, Simonette, and Willesden Green areas of Alberta, which primarily target the Montney, Cardium, and Spirit River formations and contain 414 net identified drilling locations.
The transactions include the corporate acquisition of Inception Exploration Ltd., a privately-held E&P company with operations in the Gold Creek area, in an all-stock corporate transaction valued at C$123.7 million. The Inception deal also includes interests in a central oil battery, two natural gas processing facilities, a water disposal facility, and an extensive network of field gathering infrastructure and roads.
The Simonette and Willesden Green area assets are being purchased from undisclosed sellers for a combined consideration of approximately C$24.2 million.
Total proved (1P) and proved plus probable (2P) reserves associated with the assets (as of September 30th, 2020) are 91.5 million barrels of oil equivalent (MMboe) and 215.4 MMboe, respectively. Production currently averages around 9,700 barrels of oil per day (boe/d), 65% of which is gas.
“The acquisitions add a new core area in the Alberta Montney and complement Spartan’s existing core area in the Cardium and Spirit River in west-central Alberta,” said Spartan Delta’s CEO Fotis Kalantzis.
National Bank Financial is acting as financial advisor to Spartan Delta, while FirstEnergy Capital is advising Inception Exploration.
The transactions are subject to the receipt of shareholder and regulatory approvals, and are expected to close in March 2021.