Enterra Seals Deal for Acquisition of Production in Oklahoma
Enterra Energy Trust has purchased approximately 270 boepd of production from partners in its existing Hunton development operation in Oklahoma and the deal closed on July 28, 2009. All of the production is from well bores which are operated by Enterra and in which the Trust has an existing interest. The acquisition also allows for a larger go forward interest in future drilling in this area.
"This acquisition is valuable to Enterra because it increases the Trust's working interest in well bores already operated by the Trust and will enhance Enterra's working interest in future drilling in the Hunton area", commented Don Klapko, Chief Executive Officer of Enterra, "Enterra's Oklahoma operation, and specifically the Hunton resource play, is a key focus area currently representing approximately half of Enterra's total production. The economics of this play have proved very positive for Enterra, with a 97% drilling success rate in the area to date and low finding and development costs. The Trust also has more than 50 drilling prospects identified in this area."
The combined consideration for the transaction is cash and cash equivalents of $US 6 million, and 2 million trust units.