On October 30, Prairie Provident Resources announced the sale of two assets. The two deals (still officially listed as “Pending” Alberta Energy Regulator (AER) approval) could net the company a combined total of $28.8 million, and would see Prairie Provident Resources transfer its entire asset base in the Northern Alberta region. Details in the article were scant, but we’ve used BOE Intel tools to generate a more complete picture of these announced deals.
Evi Asset Sale
The big ticket sale announcement covered Prairie Provident Resources’ Evi assets in northern Alberta. According to our transfer data, an application was filed on October 27 to transfer the Evi assets to Vantage Point Resources Inc.. The application specified the transfer of 383 wells, 41 pipelines and 86 facilities. Our estimates suggest that much more than 50% of the wells transferred target the Slave Lake formation. Vantage Point is an oil-focused private producer with assets across Alberta, and the company’s stated strategy is to “acquire under-valued assets with low recovery factors and a large portfolio of growth projects that can be captured with optimization.”
Vantage Point Resources’ Operations Map (Sourced from Vantage Point’s Corporate Website)
With production data from BOE Intel and Petro Ninja, we’ve narrowed in on an estimate for the Gross Licensed Production of wells in the assets up for transfer, although keep in mind we won’t know the exact wells being transferred until the licences change hands. Please note that gross licensed production does not account for potential working interest in these assets owned by other entities, and that public well-level data is not available for NGL and condensate data in Alberta (it is included in the natural gas production metric). From January 2022 until September 2023, the average gross licensed production for these assets was 929 BOE/d. Over this same period, oil accounted for an average of 85.8% of total gross production. For reference, Prairie Provident Resources specified in the asset sale announcement that the Q3 2023 production attributed to these assets was 874 BOE/d.
*BBL/d oil production in green, mcf/d gas production in red
Provost Asset Sale
The smaller piece of the announcement covered the sale of a portion of Prairie Provident Resources’ Provost asset holding. According to our transfer data, an application was filed to transfer Provost assets to White Tundra Petroleum Ltd. The application involved 34 wells, 15 pipelines and 7 facilities. Of Prairie Provident Resources’ proximal Provost wells, the majority target either the Banff or the Upper Mannville producing formations. As such, it’s possible that these transferred wells have similar characteristics.
As mentioned at the start of this article, these transfers have been announced but are still “Pending” AER approval. To identify these transfers the moment the paperwork is filed, and track them as the status changes, check out BOE Intel. Our activity monitoring tools allow you to track land sales, well activity and license transfers, mineral rights transfers and more.