The assets include wells, and associated production facilities are currently producing approximately 500bbls per day of oil.
The company said that the purchase price net of standard closing adjustments was $19.5m.
The acquisition includes 10.2 gross sections of crown land and operated production in the Frog Lake area directly adjacent to Twin Butte’s existing Frog Lake operations.
These lands are entirely covered with three dimensional seismic which is included with the acquisition.
Twin Butte said that it has identified numerous recompletion opportunities and a minimum of 50 drillable locations on the lands.
Twin Butte’s estimates of proven and probable reserves associated with the acquisition are 1.4 million boe based on internal evaluation as at 1 October 2010.
