Spartan Delta Acquires Additional Montney Assets in Alberta
TSX Venture Exchange listed Spartan Delta Corp. has entered into agreements with undisclosed sellers to acquire 33,500 net acres of Montney play assets located in the Gold Creek and Simonette areas of Alberta, for a combined cash consideration of approximately C$10.1 million, subject to certain closing adjustments.
Upon completion, Spartan Delta will hold interests in a total of 132,000 net acres of Montney assets. The acreage acquired comprises 12,000 net acres of assets in the Gold Creek area, and 21,500 net acres of assets in the Simonette area of Alberta. The acreage contains 100 net identified Montney locations, and is contiguous with Spartan Delta’s existing land base in Montney.
The transaction also includes associated 100% owned and operated facilities. Estimated average daily production attributable to the Simonette acreage is expected to be 300 barrels of oil equivalent per day (boe/d) upon reactivation of shut-in wells.
“The acquisitions bring Spartan’s total position in the Alberta Montney fairway to 132,000 net acres, further establishing the Company’s competitive position in the Montney and allowing Spartan to utilize its existing infrastructure footprint to optimize operating margins and enhance capital efficiencies,” the company said in a statement.
Based in Calgary, Spartan Delta currently holds assets in both Peace River Arch and Central Alberta. In June 2020, Spartan Delta had completed the acquisition of substantially all the assets of Bellatrix Exploration Ltd. in west-central Alberta.