Long Run Exploration buys Cardium assets for $225M
Deal will add approximately 7,000 barrels of oil equivalent per day.
CALGARY — Long Run Exploration Ltd. has an agreement to acquire strategic liquids-rich natural gas assets focused on the Cardium in the Deep Basin area of Alberta for $225 million.
Long Run said the deal with a company it identified only as an Alberta-based intermediate oil and gas producer, will add approximately 7,000 barrels of oil equivalent per day – 25% oil and NGLs – of concentrated, long-life liquids-rich natural gas production.
It will also and provide an additional core area that will expand its drilling inventory to support future growth, the company said in a release.
The consideration includes Long Run’s disposition of approximately 400 BOE/d of heavy oil at Lloydminster to the unnamed vendor.
Long run the purchase will be partially funded with a concurrent $120-million bought deal equity financing of subscription receipts, with the balance from the company’s credit facilities. Long Run anticipates the credit facilities increasing $100 million to approximately $575 million on closing of the acquisition, expected about May 30.
© 2014 The Canadian Press