Tamarack Valley Energy Acquires Additional Assets in West Central Alberta
TSX-listed independent E&P company Tamarack Valley Energy Ltd. has entered into a purchase agreement with an undisclosed seller to acquire additional assets in West Central Alberta for a total cash consideration of C$4.25 million.
Calgary-based Tamarack is primarily focused on operations targeting the Cardium and Viking light oil plays in Alberta and Saskatchewan. The acquired assets are located in key development plays within Tamarack’s West Central core area.
The company stated that the acquisition is consistent with its strategy to develop a portfolio focused on enhancing full-cycle profitability, adding that the acquisition offers an opportunity to reduce operating expenditures on the assets by integrating production from them into Tamarack’s operated infrastructure network in the Greater West Central core fairway.
The assets include approximately 105,000 net acres featuring ~50 high quality, multi-zone light oil and liquids-rich drilling locations, with estimated Proved (1P) Reserves of 7.5 million barrels of oil equivalent (MMboe) and Proved + Probable (2P) Reserves of 10.7 MMboe. Average daily production from the assets currently stands at around 2,500 barrels of oil equivalent per day (boe/d), 52% of which is oil and natural gas liquids.
“The acquisition continues to advance Tamarack’s strategy of enhancing its overall sustainability and free adjusted funds flow profile under current commodity prices, and features attractive acquisition metrics,” the company said in a statement.