Rubellite Energy signed a definitive purchase and sale agreement to acquire additional Clearwater assets in Canada. This agreement encompasses the acquisition of assets in the Figure Lake and Edwand regions, as well as undeveloped land located in the Nixon area within northeast Alberta.

The acquisition encompasses around 800 barrels per day (bbl/d) of conventional heavy oil sales production and secures ownership of 215 net sections of land situated along the Southern Clearwater play trend. This strategic move comes at a total purchase price of C$34m, subject to standard closing adjustments, and is set to be effective from 1 October 2023.

The finalisation of the acquisition is contingent upon receiving typical regulatory approvals and is anticipated to conclude in early November 2023. To fund this acquisition, Rubellite will tap into its augmented credit facility.

The Acquisition brings with it a range of valuable assets, including roughly 800 barrels per day (bbl/d) in conventional heavy oil sales production.

It gives the company ownership of 107 net sections of promising acreage, out of which 96 net sections remain undeveloped. This acreage is strategically located in close proximity to Rubellite’s existing land holdings in the expansive Figure Lake area, creating substantial synergy.

The acquisition also includes 49 gross high-grade drilling sites in the greater Figure Lake region. Among these, 25 sites have been internally identified as development or step-out locations, adding immediate flexibility to the Company’s drilling schedule.

Furthermore, it encompasses an additional 108 net sections of unexplored and undeveloped land in the Nixon area, located approximately 80km to the north of Figure Lake, presenting exciting prospects for future exploration and development endeavours.

Rubellite is a Canadian energy firm that specialises in the exploration, development, and extraction of heavy crude oil derived from the Clearwater formation located in Eastern Alberta.