(Daily Oil Bulletin)– Questerre Energy Corporation said on Nov. 27 that it has closed an acquisition of producing Bakken/Torquay oil assets in the Antler area of southeast Saskatchewan.
The accretive acquisition consolidates the company’s operated working interest at Antler, Michael Binnion, president and chief executive officer of Questerre, said in a news release. “We now own 100 per cent of these assets and add low-decline, high netback light oil production to our base of conventional assets.”
Post the acquisition, current production from the area, including adjacent production from Pierson, Man., is approximately 450 barrels of oil per day (bpd), he said.
Questerre acquired approximately 180 bpd of light oil production in the Antler area for gross consideration of $7.25 million, subject to customary industry adjustments. Acquired assets include 3D seismic data over the producing acreage with a value of approximately $770,000.
The effective date of the acquisition is Oct. 1, 2017. The company’s independent reserve engineers will evaluate the proved and probable reserves associated with the assets in conjunction with the year-end 2017 reserve evaluation.
Questerre also reported that it is submitting its comments on the draft hydrocarbon regulations to the ministry of Energy and Natural Resources in Quebec this week. The company said it anticipates that subject to the review of the comments received from stakeholders, the regulations should be finalized in early 2018.
Questerre said it is leveraging its expertise gained through early exposure to shale and other non-conventional reservoirs. It has base production and reserves in the tight oil Bakken/Torquay of southeast Saskatchewan and is bringing on production from its lands in the heart of the high-liquids Montney shale fairway.
The company said it is a leader on social license to operate issues for its Utica shale gas discovery in the St. Lawrence Lowlands, Que., and is pursuing oil shale projects with the aim of commercially developing these massive resources.
