Baytex acquires oil sands leases
Baytex has bought oil sands leases in Alberta.
Baytex has acquired oil sands leases in north-east Alberta's Cold Lake area.
Sales negotiations would have been used during this transaction, which saw the assets valued at $120 million (£74.3 million) before costs and closing adjustments.
This will be funded through the revolving credit facility owned by Baytex and is expected to be finalised in early October.
When the deal goes ahead, Baytex will own a 100 per cent working interest in 46 sections of undeveloped oil sands.
Baytex is based in Calgary, Alberta and is involved in the production, development and acquisition of natural gas and crude oil in the US' Williston Basin and the Western Canadian Sedimentary Basin.
In particular, the firm focuses on heavy oil.
"The acquisition of these oil sands leases is consistent with Baytex's strategy to build upon our existing heavy oil and thermal expertise," chief executive officer and president of the group James Bowzer said, adding that the company has also noted "opportunities for cold horizontal development" on the land it intends to acquire.
Source: Baytex press release, October 2nd
Posted by Ron Maverick