The assets comprise of 210,000 acres (42,000 acres net to Transerv) and existing production of 900 barrels of oil equivalent per day (boe/d), up from 135 boe/d in July 2016.
Point Loma’s portfolio includes 65 producing wells and circa 70 million cubic feet per day in gas plant capacity, production facilities, pipelines and associated infrastructure.
The new funds brought in by Transerv will be invested to unlock the proven reserves and acquire additional producing properties in the vicinity of the Point Loma facilities.
The companies are also aiming to improve the efficiency of the production facilities and thereby reduce operating expenses.
Importantly, Transerv’s investment is expected to double production over the next 12 months.
The acquisition is structured in two tranches, the first of which will be the payment of C$1.5 million within seven days of the execution of the binding term sheet.
The second payment of C$3.5 million will occur on satisfactory completion of due diligence and execution of final documentation.
Canada is a world-class oil and gas province that actively supports exploration and production activities, with many opportunities for companies of Transerv’s size.