IPC said that the acquisition includes high as well as light oil producing assets located in the Milk River area of Alberta
Canada-based oil and gas company, International Petroleum (IPC) has completed the acquisition of Granite Oil, a Canadian oil producer.
The acquisition follows an agreement signed by IPC to acquire Granite Oil in January this year for approximately $59m.
Through the acquisition, IPC will acquire total proved plus probable (2P) reserves of 14.0 million barrels of oil equivalent (MMboe) along with 6.2 MMboe of unrisked contingent resources.
IPC said that the acquisition includes high as well as light oil producing assets located in the Milk River area of Alberta.
They produce about 1,500 barrels of oil per day (bopd) of 29° API oil, from an oil pool which extends over a 50km fairway are included in the transaction.
Granite Oil’s assets include existing infrastructure to allow the current gas injection enhanced oil recovery (EOR) scheme. The infrastructure also hold the capacity to enable potential further field development opportunities.
The associated oil and gas processing and injection facilities which are located in proximity to key sales points are also included in the assets.
Granite Oil acquisition details
As per the terms of the deal, IPC has acquired all the issued and outstanding common shares of Granite for consideration of about $27m and IPC assumed Granite’s net debt of about $30m.
Furthermore, each former shareholder of Granite is entitled to receive CAD0.95 ($0.69) for each Granite Share held prior to the acquisition.
The Granite shares are expected to be delisted from the Toronto Stock Exchange and the OTCQX on or about 10 March this year.
IPC is an international oil and gas exploration and production company with a portfolio of assets located in Canada, Malaysia and France.