Athabasca to Acquire Excelsior Energy

Athabasca Oil Sands (AOSC) will buy oil sands company Excelsior Energy for $144m.

AOSC will acquire concentrated, high-quality oil sands leases at Hangingstone and West Surmont, and consolidate AOSC’s current acreage position in the Hangingstone area.

Excelsior has contingent resources of about 183 million bbl and about 26,607 net undeveloped acres of land on two contiguous blocks in the Hangingstone and West Surmont areas of the Athabasca oil sands region.

The firm also has operatorship and working interests of 75% at Hangingstone and 64.3% at West Surmont.

The acquisition would also include Excelsior’s patent for the combustion overhead gravity drainage (COGD) proprietary technology.

Project approval for a 1,000 b/d experimental pilot is expected in the latter half of 2010 with subsequent implementation and commissioning in early 2011.

After completing the deal, AOSC will have 113,007 net undeveloped acres of land in the Hangingstone area.