Northern Petroleum has signed an agreement to acquire production wells and facilities located within the area of the company’s existing Rainbow assets in Alberta.
It would acquire 75% of the assets with its joint venture partner, High Power Petroleum LLC (H2P), acquiring the remaining 25%.
Production asset package:
– Six production wells, all shut in by the previous operator for being non-core; four wells were shut in during 2015 and the remaining two in 2008 and 2009
– One water disposal well and injection pump
– Production facilities including separator, heat treater, compressor and four 400 barrel storage tanks; all wells are tied in via pipeline to the production facilities
– Two additional 750 barrel storage tanks
– Direct sales and tie-in point to the Plains Midstream Pipeline network
– First four wells to be brought into production either during the current winter work programme, if weather allows, or as part of a summer work programme; further two wells to be considered for production reinstatement later in the year
– First four wells forecast to add a combined initial production rate of 75 barrels of oil per day
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