CALGARY, Oct. 17, 2017 /CNW/ - Tangle Creek Energy Ltd. ("Tangle Creek") is pleased to announce it has closed an acquisition of assets primarily in the Waskahigan and Kaybob areas of Alberta.
Included in the acquisition is approximately 2,500 boe/d of production (35% light oil), half of which is from the Waskahigan property (60% light oil) where Tangle Creek will focus future development activities. The acquisition increases Tangle Creek's current production to over 8,000 boe/d (55% light oil).
Glenn Gradeen, Tangle Creek's CEO said "This acquisition is transformational for Tangle Creek as we have identified over 250 high quality Montney light oil drilling locations which significantly extend our existing light oil operations at Kaybob. Free cash flow from our existing assets will be directed to the Montney growth assets in Waskahigan. We plan to drill three to five Montney wells this winter using up to date drilling and completion technologies and grow production and reserves."
Tangle Creek financed the majority of the acquisition with equity, welcoming a new strategic shareholder, Wells Fargo Strategic Capital. Wells Fargo complements our existing shareholder base, led by ARC Financial and Camcor Partners, two of Canada's oldest and largest energy focused private equity investors.
Tangle Creek is a private Calgary-based resource company engaged in the exploration, development and production of oil and natural gas in Western Canada.
Tangle Creek's offices are located at 2100, 715 – 5th Ave SW, the main office number is (403) 648-4900. Further details on Tangle Creek can be found on the website at www.tanglecreekenergy.com.
This press release contains forward-looking statements. More particularly, this press release contains forward-looking statements concerning the anticipated benefits of the acquisition, the characteristics of certain properties, expected drilling locations, expected operations, uses of funds, expected increase to free cash flow as a result of the acquisition, and production and reserves growth. The forward-looking statements contained in this document are based on certain key expectations and assumptions made by Tangle Creek. Although Tangle Creek believes that the expectations and assumptions on which the forward-looking statements are based are reasonable, undue reliance should not be placed on the forward-looking statements because Tangle Creek cannot give any assurance that they will prove to be correct. Since forward-looking statements address future events and conditions, by their very nature they involve inherent risks and uncertainties. Actual results could differ materially from those currently anticipated due to a number of factors and risks. These include, but are not limited to, risks associated with the oil and gas industry in general (e.g., operational risks in development, exploration and production; delays or changes in plans with respect to exploration or development projects or capital expenditures; the uncertainty of reserve estimates; the uncertainty of estimates and projections relating to production, costs and expenses; health, safety and environmental risks; commodity price and exchange rate fluctuations; and uncertainties resulting from potential delays or changes in plans with respect to exploration or development projects or capital expenditures).
The term barrels of oil equivalent ("boe") may be misleading, particularly if used in isolation. A boe conversion ratio of six thousand cubic feet of natural gas to one boe (6 mcf/bbl) is based on an energy equivalency conversion method primarily applicable at the burner tip and does not represent a value equivalency at the wellhead. All boe conversions in this report are derived from converting gas to oil in the ratio of six thousand cubic feet of gas to one barrel of oil. Given that the value ratio based on the current price of crude oil as compared to natural gas is significantly different from the energy equivalency of 6:1, utilizing a conversion on a 6:1 basis may be misleading as an indication of value. The forward-looking statements contained in this document are made as of the date hereof and Tangle Creek undertakes no obligation to update publicly or revise any forward-looking statements or information, whether as a result of new information, future events or otherwise, unless so required by applicable securities laws.
SOURCE Tangle Creek Energy Ltd.
For further information: Glenn Gradeen, President & Chief Executive Officer, Telephone: (403) 648-4901; John Pantazopoulos, Vice President Finance & Chief Financial Officer, Telephone: (403) 648-4903