Header

PetroBakken Energy Ltd. (TSX: PBN) announced on January 19 that they have entered into an agreement to sell their entire working interest in the southeast Saskatchewan Weyburn unit (approximately a 2.2 per cent interest) for gross proceeds of $105 million, subject to adjustments.

The assets include 580 barrels of oil equivalent (boe) of production (based on field estimates from December 2011). The transaction will have an effective date of January 1, 2012 and, subject to satisfaction of all conditions and receipt of required regulatory approvals, is expected to close by the end of February 2012. Approximate transaction metrics in respect of this sale of these non-core Assets are $180,000 per flowing boe (based on field estimated December 2011 average production), nine times 12 month trailing cash flow (October 2010 to October 2011) and $23 per boe of gross proved plus probable reserves.

PetroBakken Energy Ltd. is an oil and gas exploration and production company combining light oil Bakken and Cardium resource plays with conventional light oil assets, delivering industry leading operating netbacks, strong cash flows and production growth. PetroBakken is applying leading edge technology to a multi-year inventory of Bakken and Cardium light oil development locations, along with a significant inventory of opportunities in the Horn River and Montney gas resource plays in northeast BC.

DiscoverWeyburn.com is Weyburn's only source for community news and information such as weather and classifieds.

Login