Keyera Announces Closing of West Central Alberta Asset Acquisition
CALGARY, May 1, 2014 /CNW/ - Keyera Corp. (TSX:KEY) ("Keyera") announced today that it closed its previously announced acquisition of ownership interests in certain gas processing assets in west central Alberta and associated oil and gas reserves. The acquisition includes:
an 85% ownership interest in the West Pembina 6-28 gas plant, along with
the corresponding working interest in lands from which gas is produced
into the plant;
an additional 4.6% ownership interest in the Bigoray gas plant (bringing
its ownership in that plant to 100%), along with certain associated
reserves which produce into the plant; and
- varying ownership interests in certain associated oil batteries, compressors and gathering pipelines.
The acquired reserves are all from the Nisku formation.
The total purchase price was approximately $113 million. Some of the assets are subject to third party claims, including certain reserves which are subject to rights of first refusal (ROFRs). The reserves to which ROFRs apply, together with the corresponding purchase price, are being held in escrow pending the expiry or exercise of the ROFRs.
Keyera Corp. (TSX:KEY) operates one of the largest natural gas midstream businesses in Canada. Its business consists of natural gas gathering and processing as well as the processing, transportation, storage and marketing of NGLs, the production of iso-octane and crude oil midstream activities.
Keyera's gas processing plants and associated facilities are strategically located in the west central, foothills and deep basin natural gas production areas of the Western Canada Sedimentary Basin. Its NGL and crude oil infrastructure, including pipelines, terminals and processing and storage facilities, as well as its iso-octane facility, are located in Edmonton and Fort Saskatchewan, Alberta, a major North American NGL hub. Keyera markets propane, butane, condensate and iso-octane to customers in Canada and the United States.
This document contains forward-looking statements based on Keyera's current expectations and assumptions relating to its business, the environment in which it operates, its future operations, the performance of its assets, including the newly acquired assets, the interpretation of the rights of first refusal and asserted third party claims, as well as the terms and conditions under which Keyera completed the acquisition. As these forward-looking statements depend upon future events, actual outcomes may differ materially depending on factors such as: the exercise of rights of first refusal; a determination that there are rights of first refusal extending beyond the reserves; the interpretation of the rights of first refusal under the agreements governing the West Pembina 6-28 gas plant and certain reserves; a determination that there are valid third party claims to any of the assets; Keyera's ability and right to operate the acquired facilities; producer interest in the services being offered; future operating results of the assets; the ability of Keyera to execute each of their strategic initiatives in connection with the facilities and reserves acquired; changes in production decline rates; weather conditions; commodity supply/demand balances and prices; activities of producers, competitors, customers, business partners and others; overall economic conditions; access to capital and financing alternatives; operational risks associated with gas plant operation and oil and gas production; turnaround scheduling and costs; environmental liabilities; and potential delays or changes in producer development plans in the area; the legislative, regulatory and tax environment; and other known or unknown factors. There can be no assurance that the results or developments anticipated by Keyera will be realized or that it will have the expected consequences for or effects on Keyera.
For additional information on these and other factors, see Keyera's public filings on www.sedar.com. Unless otherwise required by applicable laws, Keyera does not intend to publicly update or revise forward-looking statements, whether as a result of new information, future events or otherwise.
SOURCE Keyera Corp.For further information:
about Keyera, please visit our website at www.keyera.com or contact:
John Cobb, Vice-President, Investor Relations, or
Julie Puddell, Manager, Investor Relations
Email: email@example.com; Telephone: 403.205.7670 / Toll Free: 888.699.4853