Enercapita Energy Trust (“Enercapita”, the “Trust”) is pleased to announce the acquisition of an asset package with long life, low decline legacy production in the Boundary Lake and Worsely areas of the province of Alberta (“Acquisition”). Enercapita has acquired 500 boe/d of production for $10.6 million. This acquisition adds to the Trust’s asset base and fits well with a low decline and stable production base. The assets were acquired at attractive metrics and generate free cash flow for Enercapita to expand and grow upon. Assets acquired include 42 net wells (57 gross) with current production of approximately 500 boe/day, comprised of 48% oil/liquids. Total Proved plus Probable reserves assigned by GLJ Petroleum Consultants Ltd. as at December 31, 2014 was approximately 1,245 mboe.
Enercapita continues to believe that a unique opportunity exists to generate superior risk adjusted returns by aggregating a portfolio of high quality, low risk conventional energy assets. This Acquisition is consistent with Enercapita’s investment premise, with the following key attributes:
– Long life, low risk production with majority of wells producing for over 20 years
– Less than 12% production decline profile
– Hedged over 50% of production volumes
– Synergistic operating costs savings opportunities with existing Enercapita facilities
– Low royalty costs
– Numerous low risk optimization opportunities identified to add production at low capital costs
About Enercapita – Enercapita is an energy fund focused on low risk exploitation and optimization of existing production. The fund is an RRSP eligible investment vehicle that streams the cash flow from its production directly to its investors on a priority basis.