Indicating he’s taking advantange of the economic downturn and low commodity price environment, Cas Morel, the President and CEO of Terra Energy, is moving to solidify the position of the Calgary-based company in the Fort St. John area.
Terra has agreed to acquire all of the shares of Tecton Energy Canada, in a cash and share transaction, valued at 8 million dollars.
The news release confirming the transaction says, Tecton assets consist primarily, of 140 gross sections of mineral rights, which cover nearly 90,000 gross acres, in the immediate vicinity of Fort St. John.
They are either adjacent to or, in close proximity to, lands currently owned by Terra and, they have the potential for Montney gas.
However, more importantly to Terra, the Tecton lands also have potential, in numerous other formations in the region, including those in Baldonnel, Charlie Lake, Belloy, the Halfway, the Doig, and the Kiskatinaw. The transaction is still subject to regulatory approvals but, is scheduled to be finalized late next month.