APF Energy Acquires Stake in Swan Hills Assets
APF Energy Trust will acquire a 17% interest in the Swan Hills Unit No.1 and an average 50% interest in 14,240 gross acres of up-hole, non-unit rights for $91.75 million in cash. Swan Hills is located in Alberta, Canada. The effective date is April 1, 2003 and it is expected that the transaction will close in late July, 2003.
Swan Hills is a high quality, light gravity oil (41 degree API) asset with an established reserve life index in excess of 18 years. Upon completion of the transaction, APF's corporate established reserve life index will increase to 11 years.
The Unit is operated by Devon Canada Corporation, which is continuing to develop the reservoir through reef and edge/infill drilling and miscible flood exploitation. Production is obtained from the Swan Hills Beaverhill Lake A and B pools at a depth of 2,500 meters. The pools were discovered in 1957 and to date have recovered over 585 mmbbls of crude oil and 553 bcf of solution gas. There are 190 producing wells which in 2002 averaged 2,103 bbl/d of oil, 1,541 mcf/d of natural gas and 1,030 bbl/d of NGLs net to the interest to be acquired.
The field has been under waterflood since 1965. Miscible flooding, through the injection of hydrocarbon, began in 1985.
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Company: APF Energy Trust more info
- APF Energy Acquires Stake in Swan Hills Assets (Jun 17)