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PBN.to/PBKEF, PBG.to/PBEGF...More good news...PetroBakken sheds Weyburn stake...

Canadian player PetroBakken Energy said it has agreed to sell its entire working interest in the prolific Weyburn field in south-east Saskatchewan to an unnamed buyer for C$105 million (US$103.5 million).

Luke Johnson 19 January 2012 22:45 GMT

The non-core assets, which make up a 2.2% interest in the Weyburn project, include 580 barrels of oil equivalent per day.

The transaction metrics of the sale amount to C$180,000 per flowing barrel of oil and C$23 per boe of gross proved plus probable reserves, PetroBakken said in a statement.

PetroBakken declined to expand on how it would use the proceeds from the sale when contacted by Upstream.

The company also declined to give any information about the buyer. However, two sources told the Calgary Herald that the buyer was Toronto-based mining company Franco-Nevada, which currently owns a small stake in the play.

The decades-old Weyburn oilfield produces 27,000 barrels per day of oil and is operated by Cenovus Energy, one of 23 partners in the project.

PetroBakken said the deal is subject to adjustments and is effective 1 January. It is expected to close by the end of February this year.

The company's shares closed at C$15.44 on the Toronto Stock Exchange on Thursday, up 3.42% from a day earlier.

Published: 19 January 2012 22:45 GMT | Last updated: 19 January 2012 23:17 GMT
http://www.upstreamonline.com/live/article298842.ece