The addition of the Wildcat Hills assets will provide Direct Energy with an incremental 80 million cubic feet per day (mmcfe) of natural gas equivalent production and over 240 billion cubic feet equivalent (bcfe) of natural gas reserves (an increase of around 60%).
The Wildcat Hills assets are located 35km northwest of Calgary, complementing Direct Energy’s existing acreage position in central and southern Alberta and consist of 97 producing wells, associated infrastructure and 42,000 net acres of undeveloped land.
In addition to Direct Energy’s current holding of approximately 4,500 producing gas wells in Alberta, Direct Energy generates 1,260MW of electricity through three natural gas-fired plants and has invested in 813MW of wind-powered electricity through long-term power purchase agreements in Texas.
The transaction, which remains subject to certain conditions, is expected to close during the fourth quarter of 2010.
