2009-08-04-2009-07-01

To acquire 179 gross producing wells (115 net) in Medallion area, AB, gaining 750 BOE/d, 2.4 MMBOE proved.

An undisclosed buyer plans to acquire gas assets in the Medallion area in southern Alberta from ProspEx Resources Ltd., Calgary, for C$28 million. The assets include 179 gross producing wells (115 net) with production of approximately 750 barrels of oil equivalent per day, along with associated gas-gathering and field-compression facilities. As of year-end 2008, proved developed producing reserves were 1.5 million barrels of oil equivalent with 2.4 million barrels total proved (3.5 million barrels proved plus probable). ProspEx says, "The disposition is expected to further consolidate ProspEx's asset base around the core areas of west-central Alberta and the Deep Basin, where the company has allocated the majority of its recent capital spending, and achieved its production growth, over the past four years." The effective date is Jan. 1, 2009, with closing expected to occur in June.