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Petrel hunts for buyers in Canada

13th May 2014

By: Esmarie Iannucci

Creamer Media Senior Deputy Editor: Australasia

  

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PERTH (miningweekly.com) – ASX-listed petroleum explorer Petrel Energy is looking for a buyer for it Lochend Cardium oil assets, in Canada.

Joint venture (JV) partner Bernum Petroleum and Petrel would offer around 6 541 net acres and 3 019 net acres respectively, including two producing oil wells and two licensed well locations, as well as associated infrastructure.

Over the past year, Petrel and Bernum have worked to identify well and facility locations with a number of well locations recently approved by the regulatory authorities, giving the JV the opportunity to pursue development drilling later in the year.

“Although we are happy with our initial investment and still see potential for further value creation, we are of the view, on the back of recent industry rationalisation, that the timing is right for Petrel to monetise this asset in order to focus capital on our core projects in Uruguay and Spain, where ultimately we expect a better return,” said Petrel MD David Casey.

Petrel initially acquired its 40% interest with the purpose of leveraging off a proven operator to establish commerciality and optimise near-term reserve certification for a relatively quick turnaround and exit strategy.

Edited by Creamer Media Reporter

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