Seven Generations to expand Montney acreage

The planned acquisition of “bolt-on” acreage in the Lower Triassic Montney resource play of British Columbia from Paramount Resources Ltd. will enable Seven Generations Energy Ltd. to increase well lengths in an expanded drilling program, the buyer said.

Seven Generations, Grande Prairie, Alta., agreed to buy 99,200 net acres of Montney land from Paramount, Calgary, in a deal worth about $1.9 billion (Can.). The consideration includes $475 million cash, 33.5 million shares of Seven Generations stock, and assumption of $584 million of Paramount’s debt.

The acquired land produces about 30,000 boe/d of gas and liquids and holds proved reserves of 199 million boe. When the deal is complete, Seven Generations will hold 517,300 net acres in the Montney area. The acquisition will add 205 proved, undeveloped drilling locations to the 305 Seven Generations reports now and enable the company to expand its liquids-rich Kakwa River Project in a play it calls Nest.

“We now plan to drill longer wells in the Upper and Middle Montney formation,” said Marty Proctor, Seven Generation president and chief operating officer. “In addition, we expect to add significant potential resource in shallower and deeper formations across our expanded lands.”

The acquisition will add 245 MMcfd of gas processing capacity to the 510 MMcfd of capacity Seven Generations already has and increase its pipeline takeaway capacity to 847 MMcfd from 607 MMcfd.

Did You Like this Article? Get All the Energy Industry News Delivered to Your Inbox

Subscribe to an email newsletter today at no cost and receive the latest news and information.

 Subscribe Now


The Time is Right for Optimum Reliability: Capital-Intensive Industries and Asset Performance Management

Imagine a plant that is no longer at risk of a random shutdown. Imagine not worrying about losing...

Going Digital: The New Normal in Oil & Gas

In this whitepaper you will learn how Keystone Engineering, ONGC, and Saipem are using software t...

Maximizing Operational Excellence

In a recent survey conducted by PennEnergy Research, 70% of surveyed energy industry professional...

Leveraging the Power of Information in the Energy Industry

Information Governance is about more than compliance. It’s about using your information to drive ...