Spartan buying Saskatchewan assets for $700 million

Spartan Energy will spend $700 million to buy southeastern Saskatchewan assets from ARC Resources.

The deal between the two Calgary-based companies involves wells producing 7,500 barrels of oil equivalent per day and related oil batteries and gathering pipelines.

It said the purchase will make it one of the largest oil producers in Saskatchewan with expected yearend output of about 20,800 barrels of oil equivalent per day.

Spartan plans to raise $505 million by selling shares to pay for acquisition and will borrow the rest.

ARC will use the proceeds to advance development of its oil and gas properties in northwestern Alberta and northeastern B.C.