Argent Energy Trust business acquires oil properties in Texas, US

Canada-based Argent Energy (US) Holdings, a wholly-owned subsidiary of Argent Energy Trust, has signed an agreement to acquire petroleum producing properties in Texas, US, from Wapiti Oil & Gas and Wapiti Energy, for $120m.

The acquired assets include Newton, Livingston and Double AA Wells North fields in East Texas, and cover about 14,990 net acres of land, with estimated proved and probable reserves of 8.7 million barrels of oil, as of 31 March 2012.

In September 2012, working interest production of the acquired assets were about 1,705 barrels of oil per day, of which about 78% was from oil and NGLs.

The total proved plus probable reserve value of the acquired assets include about 69% of oil, 77% of liquids (oil and NGLs) and 23% of natural gas.

Argent said that the price of the petroleum produced from the acquired assets is linked to the Louisiana Light Sweet crude oil benchmark.

The acquisition has increased the company’s oil and NGL production, and reserves component to the overall asset base.

Production rate has increased over 10% from 3,500 to 3,600 barrels of oil equivalent per day, while production surpassed 4,000 barrels of oil equivalent per day as on 30 November 2012.

The transaction is expected to be completed on 28 December 2012, subject to closing adjustments.