Published: October 21, 2019 |

[Click image to enlarge]

[Click image to enlarge]

Pieridae Energy announced that it has completed the acquisition of Shell Canada Energy’s Foothills assets for C$190 million ($145 million).

The acquisition includes midstream and upstream assets in the southern Alberta Foothills.

With the completion of the acquisition, Pieridae now possesses an extensive drilling inventory that consists of multiple dry gas and liquids-rich gas reservoirs within the Foothills area.

In the first half of 2019, the assets included in the transaction have produced approximately 28,634 barrels of equivalent per day (BOE/d).

The production is comprised of approximately 119 million cubic feet per day (MMcf/d) of natural gas, 5,646bbl/d of natural gas liquids and 3,161bbl/d of condensate and light oil.

The Canadian energy company also acquired three deep cut, Jumping Pound, Caroline and Waterton gas plants with a combined capacity of nearly 750 MMcf/d.  a 14 percent working interest in the Shantz sulphur forming plant, and around 1,700km of pipelines.

Pieridae CEO Alfred Sorensen said: “We are very pleased to close this transformational acquisition as it secures the majority of the natural gas needed, once developed, to supply the first train at our Goldboro LNG facility for at least twenty years.

“We will now complete our negotiations with Kellogg Brown & Root Limited for a fixed price contract to construct the Goldboro LNG facility so that we can then proceed to complete the project financing and final equity raise and make a final investment decision.”

DETAILS OF THE TRANSACTION BETWEEN SHELL AND PIERIDAE

Pieridae said that it paid C$165 million ($126 million) to Shell in cash, through the issuance of term debt and equity, for the transaction. Additionally, the company had deposited $10 million ($7 million) during the signing of the PSA.

Sorensen added: “There are additional opportunities to develop our liquids-rich areas, process the sour gas, strip out the liquids, store the dry gas and then further develop our dry gas resources down the road.”

In October 2018, Pieridae was declared eligible for $1.5 billion additional German funding for the Goldboro LNG project.

The $10 billion Goldboro LNG project to be developed at the Goldboro Industrial Park in Guysborough County will feature an LNG processing facility, storage tanks, and marine works.

Source: NS Energy

To stop by Pieridae’s website, CLICK HERE

To stop by Shell’s website, CLICK HERE

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