Canadian energy company Paramount Resources announced that it is planning to sell its oil & gas properties located in Valhalla, Alberta, Canada for C$150m ($109.7m).
The sale is subject to customary regulatory approval from the Alberta Energy Regulator and the deal is expected to close by the end of this month. Though the assets’ price consideration has been disclosed, the identity of the purchaser has not been revealed.
Assets in Valhalla include about 94 (74 net) sections of land, with an estimated sales volumes of about 1400 barrel of oil equivalent per day (Boe/d) for the three month period ending this March.
Paramount says that the transaction’s closing is subject to the buyer receiving approval from Alberta Energy Regulator for the transfer of its assets.
Paramount in its report on operational update and preliminary outlook for 2017, released this February stated that at Valhalla, it recently completed the 14-22 exploratory Montney well at the location with a high intensity frack, placing about 2000 tonnes of proppant over 20 stages in 1300 meter lateral (1.5 tonnes per meter).
The company brought the well into production this January and it stated that the initial prospects were encouraging. The lands in the region have prospects in the Montney (lower, middle and upper) and lower Doig formations where the company has inventory of drilling locations to support future development.
Its other assets include Smoky/Resthaven, where a six-well exploration and delineation program will take place this year, with a target on several Cretaceous zones. The first well is a 1.4 mile horizontal Falher well.