Xstate buys addition stake in Canadian assets
Sydney-listed Xstate Resources has acquired a further 25% working interest in Blue Sky Resources’ assets in the Alberta Plains for C$1.25mn ($1mn), it said on July 14. It had bought a 10% interest in January this year.
The acquisition delivers an additional 178 boe/d of net production, the company said. The assets consist of seven oil and gas fields and associated infrastructure, located between Edmonton and the US border. The majority of the oil and gas wells have been produced for many years, it added.
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The average production for the last five years, before the wells were shut‐in during 2020 due to COVID 19 related low oil prices, was over 2,000 boe/d. During 2019 the fields averaged 1,400 boe/d. Current gross production is 710 boe/d, of which Xstate’s 35% share is now 249 boe/d. The current split of oil and gas is 96% and 4% respectively, Xstate said.
Meanwhile, the company has terminated its letter agreement to purchase 25% of the ABC assets in Canada. “The opportunity to acquire a further working interest in Alberta Plains was considered better value for shareholders by the board at the current time,” it said.