IPC makes offer to buy junior oil producer near Suffield Block holdings

By MEDICINE HAT NEWS on February 7, 2023.

https://www.medicinehatnews.com@MedicineHatNews

International petroleum has made an offer to buy a private junior oil producer located near its holdings in the Suffield Block, the company announced on Monday.

Cor4 Oil has operations east of Brooks as well as drilling locations that IPC Alberta called “complementary” to its holdings and growth strategy in southeast Alberta.

“Following these acquisitions, we now have over 25 drilling inventory locations on the Ellerslie play fairway that extends from the west of our Suffield asset, to our new land acquisition and into the Cor4 property,” stated IPC CEO Mike Nicholson in a release.

The deal, valued at C$84 million, was announced one day before the release of IPC’s fourth quarter results, expected today.

IPC stated 98 per cent of Cor4 shareholders had approved the sale, which is still subject to regulatory approval and further details of the acquisition would be made known during that release.

On Monday, Nicholson stated the company has 25 drilling inventory locations on the fairway and IPC plans to drill six wells this year.

The addition of existing production could add 4,000 barrels of oil equivalent to IPC’s production in Alberta, and 16 million barrels of probable reserves.

The global production for IPC, which also has units in France and Malaysia, was 48,400 barrels per day in 2022. About 80 per cent of that is based in Canada, both at Suffield and the company’s Onion Lake heavy oil project.

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