The net cost to 7G for these transactions was approximately $29.5m cash and other consideration. The acquisitions also include a road accessing 7G’s core lands between the Kakwa and Smoky Rivers.
7G’s net land holdings (all in the Kakwa River Project area) are now approximately 547 sections, including 516 sections (approximate) of petroleum and natural gas rights in the Montney formation, a net increase of 29% since the beginning of 2014. Most of the newly acquired land is proximal to the Company’s existing acreage.
By 7G’s management’s estimate, the company now has 50% confidence in ultimately being able to recover 25 or more trillion cubic feet of marketable gas and more than 2.6 billion barrels of liquids from the Kakwa River Project.
7G’s CEO, Pat Carlson , said, "In today’s over-supplied gas market, having transportation and marketing options is an important risk mitigation. The increased resource potential represented by the new lands enables the Company to consider whatever additional infrastructure investments might be required to ensure market access."
