Painted Pony Petroleum Ltd. said July 27 it agreed to exchange Montney acreage, wells and nonoperated facility interests in Northeast British Columbia.

The Calgary, Alberta-based company entered an asset exchange agreement with an undisclosed company to exchange 15.4 net sections (9,856 net acres). The undisclosed company is Painted Pony's large industry partner on jointly-held acreage in the Daiber, Cameron and Blair areas of its Montney asset, according to a press release.

Painted Pony will receive 100% working interest in three Montney horizontal wells, which will be re-directed to produce at the AltaGas Townsend Facility. Once the acquired wells have been tied into the facilities, Painted Pony will receive 9.4 MMcfe/d of production, a net 5.4 million cubic feet equivalent per day (MMcfe/d), or 900 barrels of oil equivalent per day, gain.

The undisclosed company will receive wells that Painted Pony has a 20% working interest in, which produce into a facility the company owns and operates. The undisclosed company will receive about 4 MMcfe/d of production.

Upon closing, Painted Pony's average working interest across its Montney acreage will increase to greater than 86% from 75%. The swap is anticipated to have a neutral impact on Painted Pony's reserves, the release said.

The transaction has an effective date of Jan. 1. Closing is subject to usual closing conditions and regulatory approvals.