Globe & Mail 10:09 AM EDT, 06/22/2021 (MT Newswires) -- Spartan Delta Corp. (SDE.V) on Tuesday said it has acquired assets in the Gold Creek and Simonette areas for a total consideration of about $10.1 million in cash. The company at last look gained 1.1% in early Tuesday trading.
The acquisitions bring Spartan's total position in the Alberta Montney fairway to 132,000 net acres, the company said.
The acquired assets include 33,500 net acres of Montney rights, 100 net Montney locations, associated 100% owned and operated facilities and 300 barrels of oil equivalent per day of production, composed of 51% crude oil, 5% natural gas liquids and 44% natural gas.
The assets in Gold Creek are composed of 12,000 net acres contiguous with Spartan's land base in Gold Creek. Forty net extended reach horizontal locations have been identified. Two locations are scheduled to be drilled in the second half of the year as part of Spartan's four-well program in Gold Creek.
The assets in Simonette include 300 boe/d of production upon reactivation of shut-in wells that will flow into the company's jointly owned Simonette 13-11 gas plant and 7,500 net acres of Duvernay rights.
21,500 net acres are contiguous with Spartan's Montney land base in Simonette. The company sees potential for economic drilling as early as 2022. Sixty net extended reach Montney horizontal locations have also been identified at the Simonette assets.
In an operational update, Spartan said its winter drilling program continues to outperform, with six out of eight wells achieving payout. Corporate production is consistent at about 40,000 boe/d.
The first of Spartan's nine-well program in the West Central Deep Basin for the second half of the year also started drilling a week ago. The company said it expects to spud the first of its four-well program in the Gold Creek area later this week.
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