Chinook divests assets to Tournament Energy

Chinook Energy Inc. has divested most of its oil and natural gas properties in Alberta to privately held Tournament Exploration Ltd. and made a payment of $925,000 for common shares representing about 70% of Tournament’s issued and outstanding share capital. Both companies are based in Calgary.

Excluded from the deal are Chinook’s interests in the Montney play in the Birley-Umbach area of British Columbia and at Gold Creek, Alta.

Divested to Tournament are interests with production averaging 985 b/d of oil and natural gas liquids and 12 MMcfd of conventional gas.

Separately, WOGH Ltd. Partnership, a wholly owned subsidiary of Chinook’s major shareholder, Alberta Investment Management Corp., transferred assets overlapping those involved in the main deal to Tournament for shares representing about 10% of the company.

After the Tournament transaction and a separate divestiture of some of its Gold Creek properties, Chinook will have production in the Montney play of 510 b/d of oil and gas liquids and 13 MMcfd of conventional natural gas.

Tournament’s main properties now are in the Willesden Green and Ferrier areas of Alberta. The company has other interests in the Wilson Creek, Lochend, and Pembina areas.

After the Chinook acquisition, Tournament’s production will be 1,690 b/d of oil and gas liquids and 20.1 MMcfd of conventional gas.

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