Canadian-based oil and gas producer Raging River Exploration has announced closing a Viking consolidation transaction from an energy producer.
The company has acquired nearly 620 barrels of oil equivalent per day (boe/d) (97% light oil) of production and 24 net sections of land prospective for Viking light oil at a consideration of approximately $58m.
The land prospective of Viking Oil comprises 15,360 net acres with 100 net horizontal drilling locations.
This deal is subject to customary closing conditions.
The acquisition demonstrates Raging River’s strategy to consolidate the Viking light oil fairway.
The transaction also includes wells and facilities in Raging River’s core Kerrobert and Lucky Hills producing areas in southwest Saskatchewan.
This acquisition also included strategic natural gas processing facility and associated pipeline network that will assist Raging River to tie-in approximately 1.5 million cubic feet per day (mmcf/d) of natural gas production, which is currently not conserved.
The company has allocated $5m to the infrastructure as the purchased facility will allow the Raging River to expand Kerrobert production without constructing a natural gas processing facility.
Raging River financed this acquisition by using its existing credit facilities. The company claimed that net debt to funds flow from operations, including the acquisition is expected to remain below annualised cashflow.
Raging River focuses on the Kindersley area of Saskatchewan. It has built four oil and gas production companies including Wild Stream Exploration and Wild River Resources, which were later sold to light and medium oil producer Crescent Point Energy.