Junior oil producer makes expansion deal near Drumheller
A junior oil producer active in Brooks is expanding its operations northward. Prairie Provident Resources announced recently it has a stock-and-debt takeover deal in place worth $55 million to acquire Marquee energy and its fields near Drumheller.
The deal would raise Provident’s daily output by about 50 per cent to 7,100 barrels of oil equivalent and includes wells, an oil battery and three gas plants with “extensive gathering network Marquee owned in the Michichi area in east-central Alberta.
“All of which are expected to provide considerable operating synergies to Prairie Provident,” according to a company release.
Marquee’s website says it has identified about 200 targets for drilling in the light-oil fields. The deal could close on Nov. 15, pending regulatory approval.
An unrelated update last week to Prairie Provident’s drilling program near Princess, Alta., stated it had successfully completed a third and final well there in early September.