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Prairie Provident Resources completes acquisition of Northern Alberta assets for $41mln
Alberta-focused Prairie Provident Resources Inc (CVE:PPR) told investors it had completed its $41mln cash acquisition of assets, which include high quality production, and are next to its Evi property core area in the Greater Red Earth area of the province.
The deal adds a stable and predictable base of cash flow that is capable of financing repeatable growth, the oiler said.
The assets add around 1,100 barrels of oil equivalent per day (boepd), with a low base decline rate of around 10%, the group added.
The acquisition was financed via Prairie’s credit facility, which has been increased by $10 million to $65 million following closing of the acquisition, and through proceeds from the recently closed $4million bought-deal equity financing of subscription receipts, it said.
The addition means the firm will have around 6,500 boepd of current production, with annual 2017 average volumes expected between 6,100 and 6,600 boepd and exit production expected between 7,500 boepd and 8,000 boepd.
The proximity to the firm’s existing asset base provides operational and technical synergies, and operating costs are expected to reduce by $2 per boe (barrel of oil equivalent) while improving the company’s ability to compete for services.
Prairie Provident shares are down 1.64% to $0.60 on the day.
Story by ProactiveInvestors
Source: http://www.proactiveinvestors.com/companies/news/175311/prairie-provident-resources-completes-acquisition-of-northern-alberta-assets-for-41mln-175311.html
