Pieridae Energy to acquire Shell's assets in southern Alberta Foothills for CA$190mn
Calgary based Pieridae Energy has announced it is to purchase Shell’s assets in the southern Alberta Foothills.
The company is to pay CA$190mn (US$144.7mn), with $175mn in cash and $15mn in shares going to Shell. The purchase includes developed and undeveloped land of 257,400 acres.
“This Acquisition will be immediately accretive to the Company and also allows us to enhance the sustainability of our existing asset base,” said Pieridae’s Chief Executive Officer Alfred Sorensen. It also demonstrates solid progress for our flagship Goldboro LNG project. We said we would acquire additional gas supplies for the LNG facility and we have done that. Not only does this deal help us secure the remaining conventional natural gas supply needed for the first train of the Goldboro LNG project, it makes Pieridae a major player in the Alberta midstream and upstream industry. But more than that, it creates a solid, ongoing foundation for the Company as we continue to build toward becoming the first Canadian company to market LNG off the east coast to global consumers.”
With the assets currently producing approximately 28,623 barrels of oil equivalent per day, they are said to align with the company’s existing Central Alberta properties, consolidating Pieridae’s hold on Alberta and British Columbia’s natural gas pools.
The acquisition is expected to close in the third quarter of 2019, subject to the usual closing conditions and regulatory approvals.