Bonavista Energy in strategic asset exchange
CALGARY, Alberta -- Bonavista Energy has entered into an agreement to acquire certain liquids rich, natural gas weighted properties within its Deep Basin and West Central Alberta core regions in exchange for properties within its non-core region in northeastern British Columbia.
This asset exchange has an effective date of Jan. 1, 2016, and is expected to close in the first week of October. There are no cash proceeds involved in the exchange.
The exchange is consistent with Bonavista's strategy to concentrate its portfolio in the Deep Basin and West Central core regions where the company has identified capital efficient, scalable development opportunities while establishing a low-cost operating structure.
The acquired assets include access to approximately 330 sections of mineral rights located adjacent to Bonavista's existing land position in these areas. These assets include 252 (172.8 net) identified horizontal drilling opportunities with exposure to formations, such as the Wilrich, Notikewin, Glauconite, Bluesky, Ellerslie and Cardium. In April 2016, production from the acquired assets was 7,700 boed (69% natural gas) with a moderate annual decline of 19%. Current production is estimated at 7,200 boed.
The divested assets are located in the Blueberry area of northeast British Columbia. In April 2016, production from these assets was 500 boed (79% natural gas).