Argent to buy properties

acquisition • Argent Energy Trust said Wednesday it has signed a deal to buy a group of producing properties in Texas and Oklahoma for $132.5 million US.

The Calgary-based trust said it will acquire a group of properties in the Manvel Field in Brazoria County, Texas, and the NE Davis, SW Mayville and Payne Fields in Oklahoma.

The properties have total estimated gross reserves of approximately 3.9 million barrels of oil equivalent on a proved basis and approximately 5.7 million boe on a proved plus probable basis as at Dec. 31, 2011.

Roughly 94 per cent of the proved plus probable reserves are oil while the remainder is natural gas.

To help fund the deal, the company said it would raise $110 million in an offering of 11 million units at a price of $10 per unit. If the overallotment is fully exercised, Argent will raise $126 million.