Angle Energy to sell gas assets in Alberta, Canada

Canadian oil and gas company, Angle Energy, has signed an agreement to sell its non-core natural gas-weighted properties in the Edson area of Alberta, Canada, for $74m.

The disposed assets, which include the company’s interests below the base of the Cardium and above the base of the Mississippian located in the greater Edson area, has a current daily production of about 2,450 barrels of oil equivalent per day, of which 77% is natural gas.

An evaluation by GLJ Petroleum Consultants reveals that the assets comprise of 10 million barrels of oil equivalent of proven reserves and 19.6 million barrels of oil equivalent of proved and probable reserves of which 81% is natural gas, as recorded on 31 December 2011.

To date the company has explored 6 gross/1.4 net producing Cardium light oil horizontal wells with slick water fracture completions and current production capacity of about 150 barrels of oil equivalent per day, of which 81% is light oil.

Angel has plans to start production at an additional 2 gross/0.4 net wells by year end.

The company has also located 142 gross unbooked Cardium light oil plays on its 33 net undeveloped sections of Cardium lands in the Edson area.

Upon the completion of the transaction, the company will reduce total leverage by 30%, with bank debt and working capital of about $111m, as well as the outstanding $60m convertible debenture.

Angle Energy has unbooked inventory of about 275 Cardium light oil locations in Harmattan, Ferrier and Edson area, whereas about 130 unbooked liquids-rich and light oil Mannville locations in Harmattan and Ferrier regions.

The transaction is expected to complete on or about 10 January 2013, subject to industry standard conditions.