Fairborne Energy To Sell Non-Core Alberta Assets For C$125MM

Transaction Type
Sellers
Buyers
Announce Date
Post Date
Estimated Price
125MM
Description

To acquire 3.9MMBOE proved reserves in Peace River Arch, Brazeau areas of Alberta.

DeeThree Exploration Ltd., Calgary, (Toronto: DTX) plans to acquire assets in the Peace River Arch, West Pembina and Brazeau areas of Alberta from Fairborne Energy Ltd., Calgary, (Toronto: FEL) for C$125 million.

The assets contain proved reserves of 3.9 million barrels of oil equivalent and proved plus probable reserves of 5.4 million barrels, for an acquisition cost of C$32.05 per proved barrel and C$23.15 per proved plus probable barrel.

Production from the assets is approximately 1,830 barrels of oil equivalent per day.

In conjunction with the acquisition, DeeThree plans to raise C$115.6 million in a bought-deal financing arrangement co-led by Macquarie Capital Markets Canada Ltd. and Casimir Capital Ltd.

Fairborne says proceeds from the sale will be used to pay down debt.