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 transaction.
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 visit www.teine-energy.com.
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.