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Pieridae Energy purchases Shell upstream assets in southern Alberta Foothills

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Oilfield Technology,

Pieridae Energy Ltd. has announced that it has signed a sale and purchase agreement (SPA) with Shell Canada Energy to acquire all of Shell’s midstream and upstream assets in the southern Alberta foothills for CAN$190 million, subject to normal adjustments.

The assets currently produce approximately 28 623 boe/d, consisting of approximately 118.9 million ft3/d of natural gas, 5646 bpd of NGLs and 3161 bpd of condensate and light oil. Pieridae will also acquire three deep cut, sour gas processing plants (Jumping Pound, Caroline and Waterton) in the acquisition, with a combined capacity of approximately 750 million ft3/d (currently operating with 420 million ft3/d of spare capacity), a 14% working interest in the Shantz sulfur forming plant, and approximately 1700 km of pipelines.

“This acquisition will be immediately accretive to the company and also allows us to enhance the sustainability of our existing asset base,” said Pieridae’s CEO Alfred Sorensen.

“It also demonstrates solid progress for our flagship Goldboro LNG project. We said we would acquire additional gas supplies for the LNG facility and we have done that. Not only does this deal help us secure the remaining conventional natural gas supply needed for the first train of the Goldboro LNG project, it makes Pieridae a major player in the Alberta midstream and upstream industry.

“But more than that, it creates a solid, ongoing foundation for the company as we continue to build toward becoming the first Canadian company to market LNG off the east coast to global consumers,” concluded Sorensen.

The conventional natural gas assets Pieridae controls are expected to allow the company to access up to US$1.5 billion in credit support from the German government under the UFK programme to develop these upstream assets as part of the Goldboro LNG project.

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Upstream news Shell news Canada upstream news