RockBridge Resources to acquire Avatar Energy’s oil and gas assets in Alberta, Canada

RockBridge Energy Alberta has signed a purchase and sale agreement with Avatar Energy to acquire certain oil and gas properties in southern Alberta, Canada, for about $80,000 in cash.

As part of the deal, the company will acquire working interests from 25% to 95% in six wells, which will produce a net of about 36 BOEPD.

The wells are expected to contain about 35% of crude oil and natural gas liquids, and 65% of natural gas.

RockBridge will also acquire one gas property with a shut in well, which is waiting to be tied in.

In addition, the company will acquire and take responsibility for another eight abandoned wells and their reclamation.

The largest producing property, which includes about five Cardium horizontal oil wells, is located in the Pembina area and is being operated by a third party.

The transaction, which is subject to approval from the TSX Venture Exchange, is expected to be completed in July 2013.

RockBridge holds 11.7% working interest in two gas wells in the Bigoray area of Alberta, and 1% working interest in the Woodrush and Drake oil and gas properties in the Peace River Arch area of northern British Columbia.

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Image: RockBridge Energy Alberta will acquire oil and gas properties in southern Alberta, Canada from Avatar Energy. Photo: Courtesy of Meredithw.