Alberta-based upstream Crew Energy entered into a sales agreement Friday with an unnamed party for its Princess, Alberta asset worth $138 million in cash.
Crew said that the sale will allow the company to “sharpen its focus on the development of its core Montney assets in Northeast British Columbia.”
The sale is scheduled to close on or about September 30, 2014 with an effective date of August 1, 2014.
The proceeds from the sale will be used to expand Crew’s Montney capital program by $20 million and repay bank debt.
The Princess asset covers 259,234 net acres of petroleum and natural gas rights.
Current production at Princess is currently 3,650 barrels of oil equivalent (boe) per day, 78 percent being liquids based on field estimates.
Princess has total proved reserves of 12.4 million boe, 86 percent being liquids.
Total proved plus probable reserves at the site are 22.7 million boe, 87 percent being liquids.
The assets have a total future development capital of $70 million.
Crew expects that continued development at its 300,000 acre Montney site can replace the production and reserves from the Princess asset.
The company said it will continue to consolidate its Montney land position.
“The disposition of the Princess assets will allow Crew to direct its capital investments to projects offering superior
economic returns and allow acceleration of its growth plans in the Montney,” the company said.