International Petroleum Corporation decides to acquire Cenovus Energy’s oil and Natural Gas assets in the Suffield and Alderson areas of southern Alberta, Canada.
Mike Nicholson, CEO comments: “We are very excited to enter into this transformational acquisition of high quality operated assets only five months after the launch of IPC. The Suffield and Alderson assets have been operated safely and efficiently by Cenovus and we are pleased to have reached this agreement to acquire these conventional producing assets as Cenovus focuses on its oil sands and Deep Basin assets. This acquisition fits perfectly with IPC’s strategy of leveraging our existing producing asset base as a platform for value accretive acquisitions of long-life, low-decline producing assets in stable jurisdictions with upside development potential.”
The Suffield and Alderson oil and natural Gas assets encompass a land position of 800,000 net acres of shallow natural gas rights and 100,000 net acres of oil rights in southern Alberta.IPC likely to control entire operatorship pegged at 6,900 barrels of oil per day. The Acquisition remains subject to regulatory approvals and is expected to be completed in the fourth quarter of 2017 as they entail low production costs with a combination of low-risk development drilling, well stimulation and enhanced oil recovery (EOR) opportunities, which have not been undertaken for a number of years due to Cenovus’ capital allocation priorities signifying further potential for future development.