BOE Intel has picked up on another small A&D transaction. Spur Petroleum appears to be disposing of some small, non-core Dunvegan assets. What we can see so far is that 13 wells, 2 facilities and 2 pipelines are pending approval from the AER for transfer to HWN Energy. Also, 1,632 net hectares of mineral rights have been transferred from Spur to HWN.
BOE Intel shows these transfers on the map below (Figure 1), where the red sections are affected locations for the licence transfers, and the yellow sections are the mineral rights transfers. These assets would definitely be non-core for Spur, which has been an amazing success story almost exclusively focused on the Clearwater over the years. Spur was one of the first movers into the play which quickly became one of Canada’s best.
Recall that HWN Energy did a couple of transformative acquisitions about five months ago that we previously highlighted here:
HWN Energy acquires assets from Bonavista Energy – 470 wells, 68 facilities, 191 pipelines
HWN’s interests to date appear to be focused on the Cardium and Dunvegan, so these assets would fit nicely into what HWN has previously acquired, and likely come with some other potential zones to explore as well.
Figure 1 – AER licence transfers and mineral rights transfers from Spur Petroleum to HWN Energy
If we tried to take it a step further, we might be able to make a pretty good guess on what type of production could be involved using Petro Ninja. Isolating the area where the transfers are taking place we see 19 wells licensed to Spur, with 13 of those being active, so those appear to be the wells being transferred. These wells are primarily Dunvegan producers.
Aggregating the production, and remembering that public data won’t show NGLs in Alberta, we get the following production plot (Figure 2). On an oil equivalent (boe/d) basis, this transfer may be somewhere in the vicinity of 800 boe/d according to public data production for the month of April. This chart is interactive so hovering over the production plots will give you more detail.
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Figure 2 – public production data for the wells likely being transferred