Westlinks to Acquire Saskatchewan Assets
Westlinks Resources Ltd. has entered into an agreement to purchase all of Bre Alta Energy's assets in the Superb Area of Saskatchewan.
The purchase price of the acquisition is $2.8 million consisting of $1.3 million of common shares, based upon the five day weighted average of the stock price prior to closing, and $1.5 million cash. The acquisition includes a 91% working interest in four existing Waseca heavy oil wells with a combined production rate of approximately 180 bbls/d. Sproule Associates Limited estimates the total proven reserves to be 671.3 mbbls and total proven plus probable reserves to be 885 mbbls net to Westlinks.
lans have been made to construct a central battery and water injection facility to reduce operating costs and optimize well production. In addition, The Company has identified 7 infill drilling locations based on geology and 3-D seismic that will increase field productivity to over 700 bbls/d. Closing of this acquisition is subject to regulatory approval but is expected on or before June 29, 2001.