In July Husky Energy Inc. announced it was in the process of acquiring some natural gas properties in Alberta when it released its dismal second quarter results. Today some more details about these assets were released.
The new properties, located in central Alberta's Ram River region, will increase Husky's natural gas production by 30 per cent to more than 65 million cubic feet per day, increasing the amount of gas flowing through the firm's underutilized Ram River Gas Plant.
The acquisition also provides 37 thousand barrels of oil equivalent per day (mmboe) in proven reserves and 11.7 mmboe in probable reserves, as of June 1, 2010. It also adds 160,000 acres of land, 122,000 of which are undeveloped, which doubles Husky's holdings in the region.
Analysts expect the firm to make more acquisitions because capital spending has been cut and the firm has had trouble maintaing its production levels.
Terms haven't been disclosed, but those should be forthcoming when the deal closes before year end. Chief executive officer Asim Ghosh promised they are "attractive" and offer "significant upside potential."
No word yet as to who sold the assets.
Tim Kiladze