The acquisition is in line with the company’s plan to purchase properties which have significant amount of residual oil and can benefit from the activated environment for recovery of oil (Aero) system.

The Aero is designed to recover additional 20% residual oil at a cost of less than $10 per incremental barrel produced.

With current production capacity of approximately 70 net barrels of oil per day, the Bonnie View field has recovered 19 million barrels of oil (MMBO) to date from about 50 million barrels of original oil in place (OOIP).

The company expects the field production to significantly increase in 2016 upon installing the Aero system in the coming days. The Aero system is expected to recover an additional 6 MMBO at the field, Glori said.

Glori Energy acquisitions and production senior vice-president Tom Holland said: "This acquisition advances our ongoing strategy to acquire producing oil properties that have a significant amount of oil remaining in place and advantageous characteristics for the AERO system to recover that residual oil.

"As we work on a number of opportunities of varying scale, we look for waterflood or waterdrive sandstone fields that have a combination of current production and significant oil left behind."