Alberta Clipper Cinches $34.3MM Deal for Private Co's Assests
Alberta Clipper Energy Inc. has successfully closed the previously announced Private Company acquisition for a total consideration of approximately $34.3 million (including $9.0 million of positive working capital surplus), made up of 6,111,737 Alberta Clipper common shares and $14.9 million in cash.
The Private Co's assets are strategically located in Alberta Clipper's Western Alberta core area and are comprised of 1.665 mmboe of proved-plus-probable reserves, as estimated by Sproule Associates Limited and approximately 400 boe/d of concentrated, 100% working-interest production (100% natural gas and associated liquids).
With the closing of the Arrangement, Alberta Clipper has acquired 8.4 townships of 3D seismic data and 87,200 acres of undeveloped land organized in large contiguous blocks at an average working interest of 58%. Opportunities identified on Private Co lands exhibit both high impact exploration and significant scalable resource development potential, which should allow the Company to double the Private Company's production by the end of the first quarter of 2009.
Of particular note, the strategic acquisition increases Alberta Clipper's exposure to the Montney tight gas play by over 60% from its current 57 net sections to 92 net sections. During the Arrangement period, the Private Co
participated in drilling a vertical well at Economy Creek which encountered 216 feet of log pay in the Montney Formation and was cased for multi-zone potential. The Montney zone is expected to be completed during the month of August. With a successful test, Alberta Clipper has in excess of 11,200 acres of Company and farm-in option lands that are prospective for Montney development within the vicinity of the well.