The Canadian energy company said that the current production from the assets being sold is nearly 11,000 barrels of oil equivalent per day and in the upcoming year, it is projected to average about 10,000 barrels of oil equivalent per day
The current production of the assets being sold by Whitecap Resources produce 11,000boe/d. (Credit: 15299 from Pixabay)
Whitecap Resources, a Canada-based oil-weighted company, revealed that it has signed three agreements to sell some of its non-strategic assets for a total consideration of C$419m ($306.6m).
The company didn’t disclose the location of the assets involved in the deal. However, it said that the deal will enable it to consolidate its working interest in the operated Butte, Saskatchewan core area.
According to Whitecap Resources, the consideration is made up of C$394m ($288.3m) in cash and producing assets.
The Canadian energy company said that the present production from the assets being sold is around 11,000 barrels of oil equivalent per day (boe/d). In 2023, it is projected to average about 10,000boe/d.
Subject to customary closing considerations, the three deals are anticipated to close in January 2023. Upon their closing, Whitecap Resources would have wrapped up the sale of its non-strategic assets that were put up for disposition.
The Canadian oil producer said that currently it expects to achieve its next net debt milestone of C$1.3bn ($951.4m) by mid-2023.
For the upcoming year, Whitecap Resources said that due to the sale of the assets, its production is forecast to average 160,000-162,000boe/d, of which 64% will be liquids. The company said that its capital budget for 2023 will remain intact at C$900m-C$950m ($658.6m-$695.3m).
The company stated: “The assets being disposed of are non-strategic to Whitecap and, therefore, had minimal capital expenditures allocated to them in 2023 and beyond.”
The core operating areas of Whitecap Resources, which are all located in Canada, are Northern Alberta and British Columbia and Central Alberta apart from Saskatchewan.
In August 2022, the company closed the previously announced C$1.9bn ($1.4bn) acquisition of XTO Energy Canada. Through the acquisition, Whitecap Resources added production of nearly 32,000boe/d and more than 2,000 drilling locations in Montney and Duvernay formations in Northwest Alberta.