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Husky Energy acquires natural gas properties


September 2, 2010
by Canadian PLANT Staff

Calgary, Alta.: Husky Energy has announced that a purchase agreement has been signed to acquire natural gas properties in west central Alberta, which will significantly add to the company’s production and reserves and extend the optimum utilization of its Ram River gas plant.

The asset acquisition will provide Husky with more than 65 million cubic feet per day (mmcf/d) of natural gas production or 10.8 thousand barrels of oil equivalent per day (mmboe). In addition, the acquisition will contribute 37 mmboe of proven reserves and 11.7 mmboe probable reserves. Husky’s reserves estimates are as of June 1, 2010.

The Ram River gas plant processes a significant portion of the production that is being acquired, and over a five-year period, further production from the acquired properties will be integrated into the plant.

"This is an important acquisition that adds to our natural gas production and reserves in an area where we have significant gas gathering and processing infrastructure," said Asim Ghosh, CEO of Huskey Energy. "The terms of the deal provide an attractive rate of return at today’s natural gas prices and offers Husky significant upside potential."

The agreement is subject to final closing and regulatory approvals this fall.

The Ram River region in the foothills of central Alberta is a core gas producing area for Husky and this acquisition adds 160,000 acres of land to the company’s holdings, including 122,000 undeveloped acres, doubling Husky’s current land in the region.