Mar 7 2014
Tanager Energy Inc. ("Tanager" or the "Corporation") is pleased to announce that is has signed a purchase and sale agreement with COGI Limited Partnership, and Arrow Point Oil & Gas Ltd. (collectively, the "Vendors") to acquire oil and gas properties in Alberta producing approximately 160 BOE/d for cash consideration of $9,000,000 (the "Acquisition").
The effective date of the transaction is January 1, 2014 and closing date of the Acquisition is expected to be on or before March 28, 2014. Tanager will satisfy payment of the acquisition price of $9,000,000 by debt financing. Tanager has an agreement in principle with Viking Investment Group to provide the $9,000,000 required to complete this transaction.
Under the Acquisition, Tanager will acquire the beneficial interests of the Vendors, of certain assets in the Claresholm, Twining and Viking-Kinsella areas of central and southern Alberta. The Claresholm property is located in southern Alberta and Tanager will acquire a 100% working interest in the 02-08-14-25W4M oil well. The 02-08 single well battery produces 33 degree API crude oil from the Glauconite Q Pool. The well was sand fracture stimulated in Q3 of 2012 and currently produces steady at approximately 60 bbl/d. The Twining property is located in southern Alberta and Tanager will acquire a 100% working interest in 10 pumping oil wells, 1 standing well and 2 suspended wells producing approximately 58 bbl/d medium gravity crude oil and 16 Mcfd of natural gas for a total of approximately 60 BOE/d. The Viking-Kinsella property is located in central Alberta and Tanager will acquire a 16-19% working interest in 3 non-operated producing oil wells. These horizontal oil wells produce approximately 40 BOE/d net from the Sparky Z4Z Pool.
A mechanical update on the properties reserves will be commissioned by the Corporation as a condition to closing. Details of the report will be provided in a later press release when available.
The completion of this Acquisition is subject to receipt of all required regulatory approvals, including approval of the TSX Venture Exchange.