SLB announced two weeks ago that it has reached a definitive agreement to sell its interests in the Palliser Block in Alberta. The assets consist of oil and gas wells, surface facilities, a pipeline network and certain oil and gas development rights.
No official price was mentioned for the transaction, and the buyer was not named.
These assets were jointly purchased with Torxen Energy in 2017 from Cenovus. SLB was the majority non-operating owner, while Torxen has been the operator. The map above shows spud activity for Torxen over the last 2 years.
The total gross production from these assets (licensed to Torxen as the operator) was ~58 MBOE/d in August 2024.
Keep in mind for the entirety of the public data presented herein that while the public data shows licences/production, etc. as belonging to Torxen, the exact nature of the working interest share of those wells and production depends on the agreement between Torxen and SLB, and SLB was the majority owner.
Figure 1 – Torxen total gross licensed production
While total production had been mostly flat since 2020, there has been a recent uptick in oil and liquids production over the last year and a half, with gross oil production exceeding 25,000 b/d in recent months. Liquids percentage hit 47% in August 2024, up substantially from the mid-30% level in 2020.
Figure 2 – Torxen gross licensed oil production
Figure 3 – Torxen Liquids Percentage
The Basal Quartz and the Mannville were the most targeted formations for spud activity over the last 2 years (Figure 4), so not surprisingly those formations are represented heavily in the company’s breakdown of production by formation (Figure 5).
Figure 4 – Torxen Spud activity by formation – last 2 years
Figure 5 – Torxen gross licensed production by formation
