CALGARY, ALBERTA–(Marketwired – Nov. 26, 2013) – Anterra Energy Inc. (“Anterra” or the “Company”) (TSX VENTURE:AE.A)(OTCQX:ATERF) is pleased to announce an arm’s length property acquisition in the Nipisi area of north central Alberta.
On November 26, 2013, the Company entered into a Purchase and Sale Agreement for the acquisition of producing oil properties in the Nipisi area of north central Alberta, for a cash consideration of $12.1 million, prior to closing adjustments and any exercise by third parties of preferential rights of purchase. The proposed acquisition is comprised of an approximate 88% working interest in 5,920 gross developed acres of land, including infrastructure and 17 producing oil wells, producing approximately 400 boe/d (94% light oil) net to the Company. Anterra intends to fund the acquisition with cash on hand and existing credit facilities. The vendor is a publicly-traded intermediate Canadian producer of oil and natural gas. The acquisition is effective as of August 1, 2013 and is expected to close on or before December 20, 2013, subject to satisfaction of customary closing conditions.
“This acquisition is consistent with our objective to build our production and reserve base in Western Canada and will almost double our current production,” stated Dr. Gang Fang, CEO of Anterra. “Looking ahead, we continue to evaluate opportunities to further expand our asset base, increase our production and add to our inventory of development opportunities.”
In addition to stable low decline production, the Nipisi property provides Anterra with development opportunities through modification of the existing waterflood program and potentially following-up on an encouraging microbial enhanced oil recovery (“MEOR”) pilot scheme initiated by the vendor.
About Anterra Energy Inc.
Anterra is an independent oil focused junior exploration and production company with an expanding presence in the Western Canadian Sedimentary Basin. The Company is actively engaged in the acquisition, development and production of oil and natural gas complemented by the operation of fee-based midstream facilities. The Company is a public Canadian company listed on the TSXV under the symbol “AE.A” and traded on the OTCQX International under the symbol “ATERF”. Additional information is available on the Company’s website at www.anterraenergy.com.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
This News Release contains forward-looking statements or information (collectively referred to herein as “forward-looking statements”) regarding the anticipated benefits of the proposed acquisition to Anterra and the anticipated timing of closing the acquisition. This News Release also contains forward-looking statements regarding development opportunities through modification of the waterflood program and MEOR potential.
The forward-looking statements contained in this News Release are based on Anterra management’s current beliefs as well as assumptions made by, and information currently available to, Anterra management concerning anticipated business conditions.
Forward-looking statements are not guarantees of future performance and the reader should not place undue reliance on these forward-looking statements as there can be no assurances that the assumptions, plans, initiatives or expectations upon which they are based will occur. In addition, the forward-looking statements are subject to known and unknown risks, uncertainties and other factors that could cause the actual results, performance or achievements of the Company to be materially different from any future results, performance or achievements expressed or implied by forward-looking statements. Such factors include, among others: general economic and business conditions; the price of and demand for oil and natural gas and their effect on the economics of oil and gas exploration; actions by governmental authorities; and, changes in government regulations and the expenditures required to comply with them (including, but not limited to, the changes in taxes or the royalty or other share of production taken by governmental authorities). Should one or more of these risks or uncertainties materialize, or should any of the Company’s assumptions prove incorrect, actual results may vary in material respects from those projected in the forward-looking statements. Readers are cautioned that the foregoing list of risks, uncertainties and other factors is not exhaustive. Unpredictable or unknown factors not discussed could also have material adverse effects on forward-looking statements. The impact of any one factor on a particular forward-looking statement is not determinable with certainty as such factors are dependent on other factors, and the Company’s course of action would depend on its assessment of the future considering all information then available. All forward-looking statements in this News Release are expressly qualified in their entirety by these cautionary statements. Except as required by law, the Company assumes no obligation to update forward-looking statements should circumstances or management’s estimates or opinions change.
Certain natural gas volumes have been converted to barrels of oil equivalent (“boe”) using six thousand cubic feet (“mcf”) of gas equal to one barrel (“bbl”) of oil unless otherwise stated. This conversion ratio is based on an energy equivalency conversion method primarily applicable at the burner tip and does not represent a value equivalency at the wellhead. Such disclosure of boes may be misleading, particularly if used in isolation.
Chief Executive Officer
Anterra Energy Inc.
Owen C. Pinnell