Interesting Land Sales in the NE BC area....(Dawson Creek)..between ECA and VSN/KKR....even LXE.V(spin-out of LNV and SGY) news today is of some interest....for the "potential"(yes,it is only a thought) of Spyglass to monetize our Noel gas pkg/acres to further reduce our $195M debt....now that the Co. has been given some "room" to breath....I am waiting for the next move to see if mgmt is really serious about reducing the debt to below $100M or just content to "slide along" the razor's edge.
A few of the highlights of the NR's below....for those interested in such small details....after watching SGL and mgmt controlled a $2.00 stock that is now trading at around ~0.30cts with a few more days left in the 2014 calendar yr...always on the look-out for positive events that might relate to Spyglass Resources. GLTA
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(ECA.T) and (VSN.T)
Veresen Midstream plans $5-billion Montney expansion
2014-12-22 16:37 ET - News Release
See News Release (C-VSN) Veresen Inc
Ms. Theresa Jang of Veresen reports
VERESEN ANNOUNCES THE FORMATION OF VERESEN MIDSTREAM WITH KKR AND A $5-BILLION MID-STREAM EXPANSION FOR ENCANA AND MITSUBISHI
Veresen Inc. has formed a new entity, Veresen Midstream Limited Partnership, which will be owned equally by Veresen and affiliates of Kohlberg Kravis Roberts & Co. LP, a global investment firm. Veresen Midstream has entered into definitive agreements to acquire certain natural-gas-gathering and compression assets supporting Montney development in the Dawson area of northeastern British Columbia from Encana Corp. and the Cutbank Ridge Partnership. CRP is a partnership between Encana and Cutbank Dawson Gas Resources Ltd., a subsidiary of Mitsubishi Corp. Veresen Midstream has also agreed to undertake up to $5-billion of new mid-stream expansion for Encana and CRP in the Montney region under a 30-year fee-for-service arrangement. Veresen Midstream will be Veresen's primary growth vehicle for its Canadian natural gas and natural gas liquids mid-stream business.
Key highlights:
- Establishes Veresen Midstream as a leading player in the core of the Montney, one of North America's most prolific and competitive resource plays;
- Requires no upfront financing from Veresen; Veresen Midstream will be financed initially through committed non-recourse debt and a cash equity contribution from KKR, while Veresen will finance its equity investment by contributing its Hythe/Steeprock assets;
- Provides Veresen Midstream with a large multiyear capital program to construct contracted mid-stream infrastructure under favourable economic terms, and a powerful platform to pursue additional third party growth opportunities;
- Establishes a long-term, fee-for-service natural-gas-gathering, compression and processing agreement with Encana and CRP;
- Cash flow neutral to Veresen in 2015; accretive as Veresen Midstream's new capital projects are placed in service.
"These agreements with Encana and CRP transform our mid-stream business and pave the way for Veresen Midstream to be a leading and innovative mid-stream player in the heart of the Montney," said Don Althoff, president and chief executive officer of Veresen. "We are pleased to partner with KKR in this transaction and very excited to work with them as we grow Veresen Midstream's business. With their support, we continue to execute our growth strategy, leveraging our existing mid-stream footprint and providing a direct line of sight to multiyear growth for our mid-stream business."
Veresen will finance its interest in Veresen Midstream by contributing its Hythe/Steeprock gathering and processing assets valued at $920-million, and in exchange will receive from Veresen Midstream $420-million, resulting in a 50-per-cent equity position valued at $500-million. KKR will finance its 50-per-cent interest in Veresen Midstream by contributing $500-million in cash. Concurrently, Veresen Midstream will acquire gathering and compression infrastructure and construction projects from Encana and CRP in the Dawson region of the Montney in British Columbia for total cash consideration of approximately $600-million, plus actual costs accrued in 2015. This infrastructure is located adjacent to the Hythe/Steeprock assets.
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Leucrotta Exploration buys 6,400 acres in Dawson, B.C.
2014-12-17 06:29 ET - News Release
Mr. Robert Zakresky reports
LEUCROTTA ACQUIRES ADDITIONAL MONTNEY LANDS AND PROVIDES OPERATIONAL UPDATE (LXE.V)
Leucrotta Exploration Inc. has added 6,400 acres (10 sections) of Montney lands contiguous to its current landholdings in the greater Dawson area of northeastern British Columbia for $6.6-million. Including the new lands, Leucrotta now has over 170 net sections of Montney prospective lands in the area.
During the fourth quarter of 2014, Leucrotta drilled one Montney horizontal well (8-18) and is currently drilling the horizontal section of a second well (13-07). These are significant step-outs from Leucrotta's original Lower Montney well (B4-19) that has been producing for over seven months.
The 8-18 well was drilled horizontally without logging or coring the vertical section due to time constraints pertaining to an area land sale. Certain mechanical issues were encountered during the testing phase; however, at the end of the test period, the well was flowing up casing at a rate of approximately 375 barrels of oil equivalent per day (20 per cent condensate) plus approximately 400 barrels per day of frac fluid. The well is now shut in to gather pressure data and will be retested at some point to help further evaluate its potential. The well has established liquids-rich gas deliverability in the area and additional data will be acquired from the well to help evaluate the overall Montney project.
The 13-07 well was drilled vertically and cored before the decision was made to kick off the well horizontally. In the vertical section, the well encountered approximately 50 metres of net pay and better than expected porosity. The drilling of the horizontal section of the well should be finished prior to Christmas and is scheduled to be completed in mid-January. Details of testing and evaluation of the well are expected to be released in late January or early February.