Wiser Canada And Talisman Exchange Canadian Property
The Wiser Oil Company announced that The Wiser Oil Company of Canada, its wholly-owned subsidiary, has completed an exchange of certain producing properties with Talisman Energy, Inc. and has also acquired from Talisman an interest in significant exploration acreage in one of the most active trends in the Western Canadian Sedimentary Basin. Wiser Canada acquired producing properties and exploration acreage from Talisman valued at $25.3 million (CDN $38.3 million) in exchange for producing properties valued at $16.2 million and $9.1 million cash, before closing adjustments. The cash portion of the transaction was funded with $4.5 million of cash on hand and $4.6 million of bank debt.
Effective as of January 1, 2001, Wiser Canada and Talisman exchanged various operated and non-operated working interests in oil and gas fields in central and western Alberta. The major properties that Wiser Canada conveyed to Talisman were its interests in the Pine Creek, Sunchild, and Portage fields, where Talisman already has a strong operating presence. In exchange, Wiser Canada received from Talisman exploration acreage in the Hinton area and certain interests in Talisman's non-strategic areas of Evi-Loon and Chinchaga. Based on first quarter 2001 production, Wiser Canada estimates its production will increase by approximately 450 BOPD as a result of this exchange.
Wiser Canada also acquired from Talisman a one third interest in 86,240 gross acres, 58,155 net acres (28,747 gross acres, 19,385 net acres to Wiser Canada) located throughout the Hinton area gas trend in Northwest Alberta. This trend is currently one of the most active areas in Alberta where multiple operators have been conducting operations. The Hinton area has multiple targets ranging from the Cardium at a depth of 2,500 meters to Leduc/Swan Hills at a depth of 4,000 meters. The reserve potential of wells in this area ranges from 3 Bcf for the shallow targets to in excess of 50 Bcf for the deeper horizons. A portion of the acquired acreage, 25,600 gross, 3,754 net acres, is currently subject to a farm-out agreement with a leading Canadian independent. Under the farm-out agreement, 2 wells have been drilled and completed to date with one of the wells now on production, and a follow-up well has been permitted. Wiser and Talisman expect to form an alliance in this emerging growth area, with Wiser's production from the Hinton area being dedicated to Talisman's extensive infrastructure and gas plant processing capability.