Northern Petroleum today confirmed a deal to acquire production wells and facilities located within the area of its existing Rainbow assets in Alberta.
Chief executive Keith Bush said: “This acquisition is a small example of the production acquisition opportunities available close to the Company’s infrastructure. The additional production will enhance the existing production base in conjunction with the current work programme and demonstrates the Company’s ability to grow production both organically and by acquisition.
“We continue to look at further suitable assets in the region, alongside reviewing more substantial production and development opportunities in Alberta and Saskatchewan under the terms of our Area of Mutual Interest Agreement with H2P.”
The deal includes six production wells, all shut in by the previous operator for being non-core, one water disposal well and injection pump and two additional 750 barrel storage tanks.
It also includes production facilities including separator, heat treater, compressor and four 400 barrel storage tanks. All of the wells are tied in via pipeline to the production facilities.
The processing facilities and sales tie-in point to the Plains Pipeline system will provide a useful second route to market to the Northern Petroleum’s existing sales tie-in point, and can serve as a backup if needed. according to the firm.
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