Petrocapita to acquire Palliser Oil and Gas assets

Canadian-based Petrocapita Income Trust has signed an agreement to acquire the assets of Palliser Oil and Gas from FTI Consulting.

With the acquisition, Petrocapita will be able to increase its number of wells from 155 gross to 521 gross and its operating and approved produced water disposal wells from nine to 30.

Furthermore, the company’s associated produced water disposal facilities will increase from nine to 19, while multi-well oil batteries are to increase from four to nine and custom treating facilities from the existing one to three.

The acquisition will also increase its pipelines from about 0.50km to 72.51km, and natural gas compressor facilities from zero to two.

The mineral land position of Petrocapita is set to rise from 10,165 gross acres to 102,868 gross acres and the company’s seismic database will increase from 0km to 237km of 2D and 10.3km² of 3D.

Through its wholly-owned subsidiary Petrocapita Oil and Gas, Petrocapita Income Trust develops and acquires heavy oil production and infrastructure assets in the Lloydminster area of east central Alberta, as well as west central Saskatchewan.

Upon closing of the acquisition, the company will also own and operate oil well service rigs, fluid haul tractors and trailers, motor graders and well site processing equipment.

Petrocapita is seeking opportunities to acquire oil production and midstream assets at a time when the oil markets are weak.