Traverse Energy Ltd. sold its royalty interest in the Brazeau area of Alberta for CA$9 million in cash proceeds, the company said June 11.
There are 10 sections (6,400 acres) containing 22 producing horizontal Cardium oil wells and 1 Notikewin gas well in the area.
During first-quarter 2015, Traverse's interest was 52 barrels of oil equivalent per day, 49% oil and NGL.
On March 31, the working capital deficiency totaled about CA$5.2 million. Proceeds from the sale will eliminate this, and also support exploration activities, the company said.
Looking ahead to 2015’s third quarter, Traverse said it plans to drill one horizontal well in a new mid-Mannville zone at Coyote. The well will test the zone’s production capability and drilling potential.
There are several vertical exploration wells planned for the Coyote-Michichi area during the third and fourth quarters, the company added.
Calgary, Alberta-based Traverse Energy Ltd. operates in western Canada.
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