CALGARY, Dec. 14, 2012 /CNW/ - Teine Energy Ltd. ("Teine" or the "Company") is pleased to announce that on December 14, 2012 it closed a
transaction whereby it acquired Viking light oil assets (the "Property Acquisition") in the Dodsland and Plato areas of southwest Saskatchewan from Long Run
Exploration Ltd. (the "Vendor"). The Property Acquisition will add production, significant reserves,
and undeveloped land to the Company's core position in the Greater
Dodsland Viking play.
Teine is acquiring 1,900 barrels per day of oil equivalent production
(1,800 barrels per day of high netback Viking oil and 600 thousand
cubic feet per day of natural gas), additional behind pipe production
and 88,000 net acres of undeveloped land. Teine estimates reserves
acquired to be approximately 18 million boe of light sweet crude and
associated gas, The Company will utilize funds raised through an equity
financing with the Canada Pension Plan Investment Board (CPPIB) and
existing credit facilities to fund the Property Acquisition. CPPIB has
been an investor in Teine since June 2010.
Teine is a private company with significant land holdings in
Saskatchewan and is focused primarily on the Dodsland Viking light oil
play. Teine has drilled over 120 horizontal oil wells in the past 12
months, is the largest single land holder in the play, and has
established itself as an industry leader in the development of this
large light oil resource.
Teine's 2013 growth plans anticipate drilling 170 horizontal oil wells
and building additional infrastructure. Upon close of the transaction,
Teine's horizontal drilling inventory will exceed 1,800 locations.
Peters & Co. Limited acted as financial advisor to Teine on the
About Teine Energy Ltd.
Teine Energy Ltd. is a private Canadian oil and gas exploration and
development company. Teine's focus is to find and develop high
netback, large hydrocarbon in place properties within the Western
Canadian Sedimentary Basin. Teine is one of the largest land owners in
Central West Saskatchewan and is one of the most active drillers in the
Saskatchewan Viking play. For more information about Teine, please
About Canada Pension Plan Investment Board
Canada Pension Plan Investment Board (CPPIB) is a professional
investment management organization that invests the funds not needed by
the Canada Pension Plan (CPP) to pay current benefits on behalf of 18
million Canadian contributors and beneficiaries. In order to build a
diversified portfolio of CPP assets, CPPIB invests in public equities,
private equities, real estate, infrastructure and fixed income
instruments. Headquartered in Toronto, with offices in London and Hong
Kong, CPPIB is governed and managed independently of the Canada Pension
Plan and at arm's length from governments. At September 30, 2012, the
CPP Fund totalled C$170.1 billion. For more information, please visit: www.cppib.ca.
SOURCE: Teine Energy Ltd.
For further information:
about Teine, please visit www.teine-energy.com.