Gear Energy announced it has acquired heavy oil assets in the company's core producing areas in Canada for $85 million. The company will own 91 percent working interest in the assets located in Wildmere, Alberta, Maidstone and Saskatchewan with a total of more than 40,000 net acres of land. The acquisition also includes 175 drilling locations and 60 recompletions, which now gives Gear Energy's drilling inventory an estimated 400 locations.
"The assets fit Gear's strategy of targeting underexploited, geographically focused production with low risk development locations and simple solutions to increase production value by lowering operating costs," according to the company's release.
The company said the assets are similar to the ones Gear Energy have been developing in the area over the last four years. Gear Energy's website states it has production areas in the East Central area of Alberta and West Central area of Saskatchewan.
The Canadian exploration and production firm specializing in heavy oil production said it will also boost its development capital budget for this year to $85 million, up from $70 million.