Eagle Energy Trust acquired a 50 percent non operated working interest in the Dixonville Montney “C” oil pool Wednesday from Spyglass Resources for $86 million.
The deal includes producing petroleum assets under horizontal waterflood at Dixonville Montney “C” located in north central Alberta.
The acquisition, made by Eagle subsidiary Eagle Energy Canada, will add about 1,250 barrels of oil equivalent per day to the company’s existing production.
Calgary-based Spyglass recently restarted 2,500 barrels of oil per day of production at the site, with full production capacity expected to be reached in the first quarter of 2015.
Production at the Dixonville Montney “C” oil field is projected to hit 2,600 bopd by the end of the year.
“The Dixonville Properties are characterized by single digit declines, a stable production base and a low ongoing sustaining capital requirement,” Calgary-based Eagle Energy said.
The sale represents production metrics of $80,000 per flowing barrel for Spyglass.
Eagle Energy will fund the purchase with $47.26 million in available cash along with the balance from its existing credit facility and expects an increase to its borrowing base as a result of the acquisition.
The purchase is expected to close on December 18.