CALGARY, A.B. – After ARC Resources announced that it will sell all of its Saskatchewan assets and operations to Spartan Energy for $700 million, the company plans to reinvest some of the proceeds in the Montney basin.
According to a company press release, ARC plans to reinvest at least some of the funds raised from the sale in their holdings on both sides of the BC/Alberta border in the Peace Region. ARC says that it plans to develop its Montney opportunities in Dawson, Parkland/Tower, Sunrise, Pouce Coupe, Attachie, Septimus, Blueberry and Sundown. ARC’s Total Petroleum Initially-in-Place in these properties is in excess of 90 Trillion cubic feet of shale gas and 9.7 billion barrels of tight oil.
“Our talented field and technical teams were instrumental in creating significant value for our shareholders from our high-quality Saskatchewan assets over the past 20 years. This strategic transaction will allow ARC to continue to create value for shareholders by developing our premium-quality Montney asset base,” said Myron Stadnyk, ARC’s President and CEO. “Funds from this transaction will further strengthen ARC’s balance sheet, provide additional optionality in funding our capital programs, and manage risk while transforming our business with larger-scale, highly-profitable projects.”
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ARC has been actively managing its asset portfolio by divesting over 14,000 barrels of oil equivalent per day of production since 2009. With this transaction, divestments of approximately 21,500 boe per day of production have led to increased operating and capital efficiencies, a continued focus on ARC’s core Montney asset base, and will continue to improve ARC’s long-term profitability.
In addition, ARC will continue to invest in its core Alberta properties at Ante Creek and Pembina.
The transaction is expected to close on or about December 8th, with an effective date of October 1st, 2016.