Northern Petroleum acquires Canadian production asset

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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