Drilling rights at Suffield block officially change hands today
By Collin Gallant on January 5, 2018.
Medicine Hat News Ownership of drilling rights on CFB Suffield block is set to be officially handed over today. In September, International Petroleum Corporation announced it would acquire operations at the base near Medicine Hat. The Canadian company related to Geneva-based Lundin Petroleum reiterated in a late 2017 press release that the closing date and all approvals were slated to be complete by Jan. 5. The company has said it will pay C$512 million to previous owner Cenovus, which has divested most of its conventional operations to pay down debt on oilsands expansions. The deal also included capped contingency payments to Cenovus for each month in 2018 and 2019 when the price of West Texas Intermediate averaged above US$55 per barrell. At the time the purchase was announced, IPC officials stated most local Cenovus staff and operators would be brought over to a new management team. The leases at Suffield and Alderson, involve contiguous 800,000 net acres of shallow natural gas rights and 100,000 net acres of oil rights. The properties averaged a production of 24,000 barrels of oil equivalent per day in 2017 weighted three-quarters to gas. 8-7
