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Private Equity Weyburn-OMERS-Ontario Teachers

Published on December 21st, 2012 | by Ted Liu


OMERS Energy and Ontario Teachers’ to acquire Pengrowth Weyburn asset for $315 million

OMERS Energy Inc. and Ontario Teachers’ Pension Plan have agreed to acquire from Pengrowth Energy Corporation (TSX: PGF; NYSE: PGH) its 10.01952% working interest in its non-operated Weyburn property for $315 million.

The transaction is expected to close in late January 2013 and will have an effective date of January 1, 2013.

BMO Capital Markets is acting as financial advisor to Pengrowth on the transaction.

Pengrowth’s share of Weyburn produced an average of 2,500 barrels of oil equivalent per day during the third quarter of 2012 and had proved plus probable reserves of 20.935 million barrels assigned to it at December 31, 2011, according to the independent reserve evaluators GLJ Petroleum Consultants Ltd.

In October 2012, Pengrowth Energy retained BMO Capital Markets to seek proposals for its interest in the Weyburn Unit in SE Saskatchewan.

The unit is operated by Cenovus Energy Inc. (TSX: CVE) is a successful example of an environmentally responsible, CO2 miscible flood which began in 2000 and is the largest CO2 gas sequestration project in the world, injecting over 2 million tonnes of CO2 per year. To date, approximately two thirds of the CO2 flood patters expected to be developed in the Unit have been implemented. Typically miscible floods can provide recovery factors in excess of 60%.

Cenovus Energy operates the 210-square-kilometre Weyburn field and has a 62% ownership stake.

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About the Author

Ted is an editor of CVCA News and Research Director for CVCA - Canadian Venture Capital & Private Equity Association. Ted has been following Canadian venture capital and private equity industry since 1993.

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