11/04/2017 - 15:05

Transerv buys into Canadian gas operation

11/04/2017 - 15:05

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Oil and gas explorer Transerv Energy is back looking for opportunities overseas after failing to achieve commercial success in Australia, announcing today a $4.9 million farm-in agreement over a producing operation in Canada.

Transerv buys into Canadian gas operation
Processing infrastructure at Point Loma Resources' oil and gas operation in Canada.

Oil and gas explorer Transerv Energy is back looking for opportunities overseas after failing to achieve commercial success in Australia, announcing today a $4.9 million farm-in agreement over a producing operation in Canada.

Perth-based Transerv told the market today it would pay $C5 million to acquire a 20 per cent working interest in Point Loma Resources’ land, property, equipment and production facilities in Alberta.

The farm-in follows news in December that Transerv’s plans to acquire Australian assets owned by Origin Energy had fallen through, after Origin instead opted to place the assets into a spin-out company.

Transerv has also invested in exploration in the Perth Basin, particularly the promising Warro field, but that has not delivered on early expectations.

The Canadian operation includes a 210,000 net acre portfolio with existing production of 900 barrels of oil equivalent per day over 65 producing wells.

“Transerv is pleased to be returning to Canada this time with a focus on securing high quality producing assets with material upside,” managing director David Messina said.

"Canada is a world class oil and gas province with many opportunities for companies of Transerv's size and also a country that actively supports exploration and production activities.

“It is a significant advantage that we are able to join forces with a like-minded operator in Point Loma and work with competent people we know and trust.

“Point Loma has achieved remarkable growth over the last 12 months and our investment with them will be a catalyst for another substantial step change increase in reserves and production.”

The Transerv investment is expected to double production over the next 12 months.

Transerv shares were unchanged at 1 cent each at the close.

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