Suncor Energy Closes On C$1 Billion Sale Of Its Conventional Natural Gas Business

Acquired producing oil and natural gas assets in the Western Canadian Sedimentary Basin including 250 MMcfe/d estimated 2013 production.

Canadian-based Suncor Energy has sold its producing oil and natural gas assets in the Western Canadian Sedimentary Basin to Centrica and Qatar Petroleum International (QPI) for a C$1 billion price tag. The completion date of the sale was announced Sept. 26.

The assets include proven and probable (2P) reserves of 978 billion cubic feet equivalent (90% natural gas), with estimated 2013 production of 250 million cubic feet equivalent per day. The package also includes more than 1 million acres of undeveloped land, a large seismic database and infrastructure, and gas processing plants.

“Today’s announcement marks the most significant step in our growth plans to date, securing our position as a leading producer of natural gas,” Wes Morningstar, Centrica Energy Canada’s senior vice president, stated in a press release.

“In partnership with QPI, we have a great base on which to build here in Canada and this new deal provides exciting development opportunities for our projects and our talented team of people,” he stated.

Centrica’s net P2 reserves in the Western Canadian Sedimentary Basin are now number more than 1,100 billion cubic feet equivalent.

QPI was established in 2005 as a wholly-owned subsidiary of Quatar Petroleum, the state-owned national oil company of the State of Quatar.