Westgate Energy Inc. said it has terminated its planned acquisition of assets in East-Central Alberta in mutual agreement with the vendor, an undisclosed private oil and gas company.
Calgary, Alberta-based Westgate said it was not able to obtain certain third-party approvals and consents required to close the acquisition.
The vendor has returned Westgate’s $506,670 (CAD 700,000) deposit, including all interest earned, the company said in a news release.
In March, Westgate entered into an asset purchase and sale agreement with “an arm’s length, large, well-financed private oil and gas company” for the strategic acquisition of Mannville Stack focused assets in East-Central Alberta near Frog Lake for a total cash consideration of $5.1 million (CAD 7.0 million), before closing adjustments.
The company’s net cost for the acquisition was expected to be approximately $4.1 million (CAD 5.7 million).
Westgate was set to acquire 14.5 sections (3,712 hectares) of primarily contiguous mineral rights, and 58 barrels of oil. Up to 57 multi-lateral horizontal well locations had been internally identified by the company on the lands across three stacked oil-bearing Mannville zones.
In August, Westgate said it brought on all three wells in its previously announced drilling program, noting that it is “pleased” with the initial rates of oil production. The new wells continue to clean up as expected and are being optimized on a daily basis, the company said in an earlier statement.
A more detailed report on the production rates of the new wells can be expected in the coming weeks once they have been fully optimized and fluid rates and oil cuts have stabilized, Westgate said.
Westgate stated that it is in the planning stages for a follow-up drill program at the company’s Beaverdam assets in the Cold Lake area of Alberta, in anticipation of continued positive results from the new wells. The next program is expected to start in the fourth quarter.
Westgate said it is focused on the emerging Mannville Stack fairway located in East-Central Alberta and West Central Saskatchewan, which is characterized by known accumulations of medium and heavy oil that are “being unlocked via the application of innovative drilling techniques that have optimized horizontal drilling in shallow heavy oil reservoirs”.
According to the company, applying these drilling techniques have yielded some of the strongest oil well economics across Western Canada.
“The management team and board of Westgate have extensive experience building and leading successful energy companies in Canada. The collective successes of the leadership group share common characteristics: a strategy of targeting high-quality oil assets with large quantities of oil-in-place and driving growth through successful drilling as well as strategic merger and acquisition opportunities,” the company said in a statement.
“This proven blueprint of delivering shareholder value will be foundational to Westgate’s strategy, positioning the company as one of a select few pure-play, high-growth, publicly traded junior oil companies focused on the Mannville Stack fairway,” Westgate added.
To contact the author, email rocky.teodoro@rigzone.com
Generated by readers, the comments included herein do not reflect the views and opinions of Rigzone. All comments are subject to editorial review. Off-topic, inappropriate or insulting comments will be removed.
element
var scriptTag = document.createElement(‘script’);
scriptTag.src = url;
scriptTag.async = true;
scriptTag.onload = implementationCode;
scriptTag.onreadystatechange = implementationCode;
location.appendChild(scriptTag);
};
var div = document.getElementById(‘rigzonelogo’);
div.innerHTML += ” +
‘
‘ +
”;
var initJobSearch = function () {
//console.log(“call back”);
}
var addMetaPixel = function () {
if (-1 > -1 || -1 > -1) {
/*Meta Pixel Code*/
!function(f,b,e,v,n,t,s)
{if(f.fbq)return;n=f.fbq=function(){n.callMethod?
n.callMethod.apply(n,arguments):n.queue.push(arguments)};
if(!f._fbq)f._fbq=n;n.push=n;n.loaded=!0;n.version=’2.0′;
n.queue=[];t=b.createElement(e);t.async=!0;
t.src=v;s=b.getElementsByTagName(e)[0];
s.parentNode.insertBefore(t,s)}(window, document,’script’,
‘https://connect.facebook.net/en_US/fbevents.js’);
fbq(‘init’, ‘1517407191885185’);
fbq(‘track’, ‘PageView’);
/*End Meta Pixel Code*/
} else if (0 > -1 && 75 > -1)
{
/*Meta Pixel Code*/
!function(f,b,e,v,n,t,s)
{if(f.fbq)return;n=f.fbq=function(){n.callMethod?
n.callMethod.apply(n,arguments):n.queue.push(arguments)};
if(!f._fbq)f._fbq=n;n.push=n;n.loaded=!0;n.version=’2.0′;
n.queue=[];t=b.createElement(e);t.async=!0;
t.src=v;s=b.getElementsByTagName(e)[0];
s.parentNode.insertBefore(t,s)}(window, document,’script’,
‘https://connect.facebook.net/en_US/fbevents.js’);
fbq(‘init’, ‘1517407191885185’);
fbq(‘track’, ‘PageView’);
/*End Meta Pixel Code*/
}
}
// function gtmFunctionForLayout()
// {
//loadJS(“https://www.googletagmanager.com/gtag/js?id=G-K6ZDLWV6VX”, initJobSearch, document.body);
//}
// window.onload = (e => {
// setTimeout(
// function () {
// document.addEventListener(“DOMContentLoaded”, function () {
// // Select all anchor elements with class ‘ui-tabs-anchor’
// const anchors = document.querySelectorAll(‘a .ui-tabs-anchor’);
// // Loop through each anchor and remove the role attribute if it is set to “presentation”
// anchors.forEach(anchor => {
// if (anchor.getAttribute(‘role’) === ‘presentation’) {
// anchor.removeAttribute(‘role’);
// }
// });
// });
// }
// , 200);
//});
