Spartan makes $98m light oil buy

Calgary sale: Explorers make $98m deal

Canada’s Spartan Energy has agreed to acquire producing properties in the south-east Saskatchewan from fellow Calgary outfit Lightstream for $98 million ($90.38 million).

Spartan Energy said the properties being acquired from are currently producing around 1000 barrels oil equivalent of “high-netback, low-decline light and medium oil”.

The production from 356 net wells is 96% liquids, according to Lightstream, which said it was selling in order to focus on its Swan Hills area operations in Alberta and British Colombia.

Spanning 36,250 net acres in all, the properties hold proved and probable reserves of around 3.95 million boe with sections of undeveloped land and identified drilling locations.

Spartan has also entered into a $100 million bought deal financing with a syndicate of underwriters to fund the buy.

The explorer also said it now expected to end the year with production of 8600 boepd, up from its previous estimate of 7500 boepd.

Formerly known as Alexander Energy, Spartan Energy also operates producing light oil assets in Alberta.

Lightstream, which was formerly known as PetroBakken Energy, said the deal took it past its targeted $300 million in divestments for the year to reduce its debtload and focus on new resource plays.

The explorer has now set a new target of offloading $600 million worth of assets by the end of next year.

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