Painted Pony’s properties are located in the Northeast British Columbia areas of Blair, Daiber, Kobes and Townsend
Painted Pony’s land and production is located within Canadian Natural’s core area. (Credit: John R Perry from Pixabay)
Canadian oil and gas company Canadian Natural Resources has agreed to acquire Painted Pony Energy, a natural gas producer, for $461m.
The transaction amount includes assumption Painted Pony’s total debt of approximately $350m.
Painted Pony is mainly focused on the development of natural gas and natural gas liquids from the Montney formation in northeast British Columbia.
The company’s properties in the Northeast British Columbia areas of Blair, Daiber, Kobes and Townsend, together produce about 270 million cubic feet per day of natural gas and 4,600 barrels per day of natural gas liquids (NGLs).
With Painted Pony’s land and production located within Canadian Natural’s core area, the acquisition is expected to offer opportunity to leverage synergies with a significant amount of pre-built infrastructure and transportation available.
The transaction is subject to certain regulatory approvals
The deal is expected to be concluded in late third quarter or early of fourth quarter this year, subject to closing conditions.
It also requires certain regulatory approvals that include approval under the Competition Act (Canada).
Canadian Natural president Tim McKay said: “This acquisition further strengthens Canadian Natural’s natural gas assets and production base in key operating areas and complements the Company’s diversified portfolio.
“This transaction also allows us to further insulate against natural gas costs in our oils sands operations and has minimal impact on the Company’s low overall corporate decline rate. We look forward to working together with the staff currently employed by Painted Pony.”
In May last year, Canadian Natural Resources announced plans to buy Devon Canada that owns heavy oil assets that are mainly located in Alberta from Devon Energy, for $2.8bn.