Bonavista Energy Trust will pay $228-million in cash to buy Suncor Energy Inc. natural gas properties in Alberta as Canada's largest oil and gas company continues to shed non-core operations.
Bonavista said Wednesday the acquired properties are adjacent to its Whitecourt operations in Alberta and the trust will fund the strategic acquisition with a combination of equity sales and bank debt
The energy properties currently produce 20.5 million cubic feet per day of gas and 540 barrels per day of liquids, for a total of 3,950 oil-equivalent daily barrels.
'The acquired properties provide a stable foundation of production and infrastructure, complementing our deep basin land position in west central Alberta, Bonavista said in a release.
In a separate release, Suncor said the sale includes properties known as Rosevear and Pine Creek, located in the Edson-Whitecourt area, about 200 kilometres west of Edmonton.
The sale is expected to close in the middle of the second quarter subject to closing conditions and regulatory approvals.
Since its takeover of Petro-Canada last summer, creating Canada's largest oil and gas company, Suncor has been selling properties it does not consider core to its far-flung operations.
So far, the company has disposed of more than $1.54-billion of assets.
"As part of its strategic business alignment, Suncor plans to divest of a number of non-core assets," Suncor said in a separate release.
"The proposed divestments include certain natural gas assets in Western Canada and the United States Rockies, all Trinidad and Tobago assets and certain non-core North Sea assets, including all assets in The Netherlands."
In its own release, Bonavista said the lands cover about 20,000 hectares and complement Bonavista's base of about 1.2 million net hectares.
The purchase will be funded in part by issuing 7.5 million Bonavista trust units at $23.60 each, for a total of $177 million in gross proceeds before transaction costs.Report Typo/Error
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