Grizzly Concludes Alberta Oil Sands Deal With Petrobank

Transaction Type
Sellers
Buyers
Announce Date
Post Date
Close Date
Estimated Price
225MM
Description

Purchased 100% WI in 46,720-acre May River property in the AB Athabasca oil sands, gaining 90.6 MMBOE 2P.

Grizzly Oil Sands ULC, a company in which Gulfport Energy Corp., Oklahoma City, (Nasdaq: GPOR) holds an approximate 25% interest, announced today it has closed its acquisition of the May River property in the Alberta oil sands from Petrobank Energy and Resources Ltd., Calgary, (Toronto: PBG) for C$225 million.

The assets include 100% working interests 46,720 acres (18,250 hectares) of oil sands leases in the Athabasca oil sands area.

Proved and probable reserves are 90.6 million barrels of oil and best estimate contingent resources based upon steam assisted gravity drainage is projected to be 624.1 million barrels.

Grizzly intends to develop the May River property using SAGD recovery technology and its ARMS development model. Grizzly's first ARMS plant is under construction for Phase 1 of its Algar Lake SAGD project which is currently on budget and on schedule for first production in early 2013.

Grizzly chief executive John Pearce says, “The May River property adds substantially to the magnitude and quality of Grizzly's existing portfolio of projects which, upon completion of the transaction, will include approximately 800,000 net acres of oil sands leases and nearly 3 billion barrels of reserves and resources. Following the closing of the transaction, Grizzly intends to begin the work necessary to file a regulatory application for full field development.”

The deal is expected to close by the end of February.