Arc Energy buys prize oil fields
Imperial, Exxon Canada the sellers Deal valued at $480 million
CALGARY— Arc Energy Trust has acquired two major oil fields in central Alberta owned by Imperial Oil and its sister company in a deal valued at $480 million. Imperial and ExxonMobil Canada announced late yesterday they have agreed to sell to Arc Imperial’s interests in the Redwater oil field near Edmonton as well as a stake in the North Pembina field, operated by ExxonMobil Canada. In addition, Arc is buying ExxonMobil Canada’s interests in the North Pembina field, near Drayton Valley, Alta. The price tag is $480 million and the deal is expected to close in mid- December. Imperial and ExxonMobil Canada are subsidiaries of ExxonMobil Corp. Arc said oil and gas production from the two properties it is acquiring averaged about 5,460 oil- equivalent barrels a day during the third quarter. The Calgary trust estimated the fields have 40 million barrels of oil reserves left in the ground for Arc to produce.
“ These legacy assets are two of the largest and highest- quality light oil fields ever discovered in western Canada,” John Dielwart, Arc’s president and CEO, said in a release after stock markets closed yesterday.
Arc Energy said it is financing the acquisition with a combination of debt and equity and has struck a deal to sell nine million trust units at $26.65 each to raise $240 million.
Arc Energy said its board had approved a plan to spend $340 million in capital projects in 2006, about $70 million more than 2005, with a plan to drill 263 net new wells.