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Latest Headlines
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Nov 30, 2009 3:46:00 PM MST
Husky buys properties in Lloydminster region in Alberta and Saskatchewan (Husky-Energy)
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CALGARY _ Husky Energy Inc. (TSX:HSE) said Monday it has bought a group of heavy oil properties in the Lloydminster area between Alberta and Saskatchewan for an undisclosed price.
The assets being sold by Penn West Energy Trust (TSX:PWT.UN) add more than 6,000 barrels of oil production per day, 12 million barrels of oil proven reserves and 8.5 million barrels of oil probable reserves.
Husky also acquired 26 sections of undeveloped land with the purchase, and has identified more than 70 drilling locations and 235 recompletion and startup opportunities.
"Husky has a long history as a heavy oil producer in the Lloydminster area and these assets, of course, will complement our strong position within this area," said Husky spokeswoman Sharon Murphy.
"It does represent a great opportunity for us to continue to expand our heavy oil portfolio."
The Lloydminster region is a key area for Husky with heavy oil assets including an upgrading refinery, asphalt refinery, cogeneration power plant, ethanol plant, logistics centre and pipelines.
Husky also has oilsands operations in Alberta, exploration and production in southeast Asia, offshore production in Eastern Canada and a chain of Husky-branded gasoline stations.
Calgary-based Penn West is North America´s largest conventional oil and natural gas income trust, with average daily production of about 192,000 boepd and proved plus probable reserves of about 729 million boe.
Over the past year or so, Penn West has been sharpening its focus on its core areas, which include the Cardium oil pool in central Alberta, the Lower Shaunavon play in Saskatchewan and the Waskeda region in Manitoba.
Its plan has been to shed between 12,000 and 16,000 barrels of oil equivalent per day of smaller properties, said Jason Fleury, Penn West´s manager of investor relations
"What you´re seeing us do is sell off the stuff that doesn´t fit to where we´re driving the vehicle," he said.
"You look at that map and see who´s the big dog out in Lloydminster, and that´s Husky."
Husky shares fell 15 cents to $27.70 on the Toronto Stock Exchange on Monday. Penn West units closed down 25 cents to $18.50.
In another development Monday that affects the Lloydminster area, Provident Energy Trust (TSX:PVE.UN), an oil and gas royalty trust, announced it had completed the previously announced sale of its oil and natural gas assets in that border area to Emerge Oil & Gas Inc.
The price tag of the cash and share swap deal is $85 million, including closing adjustments.
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