Cequence Energy has entered into an agreement for the sale of its entire interest in its non-operated assets located in the Ansell area for C$141 million (US$130 million).
· 18,800 net acres of land
· Total 2P reserves (WI) of 34.6 MMBOE
· Current production of 1.6 MBOE/d (90% gas)
· 49% WI in a 120 MMcf/d sales pipeline and a 30 MMcf/d compressor station
Bonavista has identified approximately 116 horizontal drilling locations on the acquired assets. Over the next 18 months, Bonavista plans a 34-well Wilrich development program that is expected to increase production of the acquired assets to 6 MBOE/d by end-2015.
With this acquisition, Bonavista has increased its 2014 capital budget to $580-$600 million, to drill between 100 and 115 net wells resulting in production of between 76-78 MBOE/d, representing a 5% YoY increase over 2013 annual production.
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