Pieridae Energy to buy Shell Canada’s Alberta gas assets for $144.7m

Canadian oil and gas exploration firm Pieridae Energy has signed an agreement with Royal Dutch Shell to buy the latter’s midstream and upstream assets in Alberta for C$190m ($144.7m).

The accretive acquisition will enable Pieridae to supply additional gas required for the first phase of its proposed Goldboro terminal in Nova Scotia, eastern Canada.

The midstream and upstream assets in the southern Alberta Foothills area currently produces 28,623boe/d, consisting of 118.9MMcf/d natural gas liquids and 3,161bbl/d condensate and light oil

Pieridae chief executive officer Alfred Sorensen said: “This acquisition will be immediately accretive to the Company and also allows us to enhance the sustainability of our existing asset base.

“It also demonstrates solid progress for our flagship Goldboro LNG project. We said we would acquire additional gas supplies for the LNG facility and we have done that.

“Not only does this deal help us secure the remaining conventional natural gas supply needed for the first train of the Goldboro LNG project, it makes Pieridae a major player in the Alberta midstream and upstream industry.”

Pieridae will also buy three sour gas plants, Waterton, Jumping Pound and Caroline, as well as the gas fields that feed them.

Shell Canada president and country chair Michael Crothers said: “I’m proud of the sour gas businesses we have built in Alberta.

“We are pleased they are going to a buyer with a strong focus on safety, community and environmental stewardship, and one that is well placed to take these assets to the next stage of their development.”

Expected to complete in the third quarter this year, the acquisition is subject to completion of customary closing conditions and receipt of other regulatory approvals.