Long Run Exploration to acquire Canadian oil and gas assets

Canada-based oil and gas company Long Run Exploration will acquire oil and gas assets and associated infrastructure in the Edmonton and Peace River areas for approximately $55m.

The assets include around 133 net sections of land including 35,000 net hectares of drilling rights located near company’s Peace River Montney and Edmonton Viking operations. The acquired properties produced around 1,500 barrels of oil equivalent (boe) a day in July, including around 60% light crude oil and natural gas liquids.

Long Run also signed an agreement to sell heavy oil and shallow gas properties in Saskatchewan, for approximately $13m. Production of around 300 boe a day was sold.

Long Run plans to produce around 25,300 boe a day in the third quarter of 2013, which expects to hold around 53% oil and NGLs.

The company plans to strengthen its core areas by selling some assets and acquiring additional assets where it can leverage its horizontal drilling and multi-stage technology to achieve operational efficiency.

It will conduct horizontal drilling complemented by EOR through water injection at Montney oil field in Normandville and Girouxville.

It also intends to add around 150 development drilling locations to its current inventory in the Viking play area to increase production.

The company has produced around 80 barrels of light oil a day from each of two wells in the Provost area, which is located to the southeast of Redwater. It plans to drill the additional two wells in the fourth quarter of 2013 to further validate the Provost Viking trend.