CALGARY, ALBERTA–(Marketwired – Feb. 15, 2017) – Petrocapita Income Trust (CSE:PCE.UN)(CSE:PCE.UN.CN) (“Petrocapita” or the “Trust“) announces that it has closed a Purchase and Sale Agreement (“PSA“) on February 13, 2017 for 10 wells and associated production equipment in the Kitscoty area of Alberta from Twin Butte Energy Ltd. (“Twin Butte“) through Twin Butte’s Receiver Manager, FTI Consulting Canada Inc. (“FTI“) for $21,825.29 (plus or minus any adjustments pursuant to the PSA post-closing). The Trust estimates future abandonment and reclamation obligations associated with these assets of approximately $485,000. The effective date of the transaction is December 1, 2016.
About the Transaction
This acquisition compliments the Trust’s original 9 wells and associated production equipment, a water disposal facility, and 0.8 km of flowlines and 7 wells with associated production equipment from Twin Butte in April 2015; and the acquisition of 3 wells with associated production equipment from Sahara Energy Ltd. in September 2016, all completed in the same Mannville pool with a cumulative recovery to date of less than 5%. With a 100% interest in 29 wells and a central disposal facility, the Trust believes it is positioned to substantially improve recovery and production in the area.
Details related to the Trust’s reserves and facilities valuations and secured convertible debenture closings to date related to the acquisition and development capital have been filed with the Canadian Securities Exchange (www.theCSE.com).
Petrocapita Income Trust is a Specified Investment Flow Through trust developing and acquiring heavy oil production and infrastructure assets in the Lloydminster area of east central Alberta and west central Saskatchewan through its wholly owned subsidiary, Petrocapita Oil and Gas LP. Petrocapita owns or has interest in 445 gross (426.3 net) oil wells, 89 gross (20 net) gas wells, 19 produced water disposal facilities, 3 custom oil processing facilities, 3 natural gas compressor stations, 72.75 km in pipelines, oilwell service rigs, fluid haul tractors and trailers, motor graders, and wellsite processing equipment. It is seeking accretive opportunities to acquire both oil production and complimentary midstream assets during a cyclical low in the oil and gas markets.