Gear Energy and TOP Oil Production Ltd. have filed an application with the AER to transfer 93 wells, 15 facilities and 2 pipelines from Gear to TOP Oil Production. That application is currently listed as Pending AER approval, but was spotted by our tools at BOE Intel.
For Gear, it appears to be a non-core asset disposition as the company has not been active in the area where the disposition is focused. Using our BOE Intel activity map (Figure 1), you can see the affected locations for the AER Licence transfers in red, current Gear crown mineral rights in green, and any well spuds by Gear over the last 2 years in blue. The locations for the disposition have not seen any spud activity by Gear over that time frame.
Figure 1
Zooming in a little bit we can see what appears to be the main producing assets (Figure 2). These affected locations contain 74 wells licensed to Gear (not including abandoned wells), so likely represent the bulk of the wells to be transferred. These are predominantly heavy oil assets located west of Lloydminster.
Figure 2
Aggregating the current production from that specific group of wells, we get a current production rate for May of about 126 bbl/d or 195 boe/d including natural gas production. Keep in mind that this is the gross production from these wells and would not take into account any working interest splits. See Figure 3 below for the production history from that specific group of wells licensed to Gear. This is an embedded chart so hovering over it will allow you to see the production at various timeframes.
Figure 3
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