CALGARY, ALBERTA–(Marketwired – July 5, 2016) – Petrocapita Income Trust (CSE:PCE.UN) (“Petrocapita” or the “Trust“) announces that it has executed a Purchase and Sale Agreement (“PSA“) to acquire all, or substantially all, of the assets of Palliser Oil and Gas Corporation (“Palliser“) from its Receiver Manager, FTI Consulting Canada Inc. (“FTI“), subject to approval of the Court of Queen’s Bench of Alberta. If approved, the effective date of the transaction is May 01, 2016. Details of the transaction may be found on the website for FTI (cfcanada.fticonsulting.com/Palliser).
About the Transaction
The acquisition of the Palliser assets would result in increasing the Trust’s number of wells from 155 gross (147.4 net) to 521 gross (429.7 net). It would also increase its operating and approved produced water disposal wells from 9 to 30, its associated produced water disposal facilities from 9 to 19, its multi-well oil batteries from 4 to 9, its custom treating facilities from 1 to 3, its pipelines from approximately 0.50 km to 72.51 km, and its natural gas compressor facilities from 0 to 2. Additionally, it would increase its mineral land position from 10,165 gross acres (9,859 net) to 102,868 gross acres (68,643 net) and its proprietary seismic data base from 0 to 237 km of 2D and 10.3 square km of 3D.
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).
A copy of the 2015 Update outlining the Trust’s activities and development plans along with details of the acquisitions have been posted on the Trust’s website (www.Petrocapita.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. Subject to closing on the acquisition noted above, it will own and operate 432 gross (409.7 net) oil wells, 89 gross (20 net) gas wells, 19 produced water disposal facilities, 3 custom oil processing facilities, 2 natural gas compressor stations, 75.21 km of pipelines, oil well service rigs, fluid haul tractors and trailers, motor graders and well site processing equipment. It is seeking accretive opportunities to acquire both oil production and complimentary midstream assets during a cyclical low in the oil markets.