Australia's Calima Energy continues to expand its footprint in northeast B.C.
The company announced Feb. 19 that it has acquired compression facilities and associated pipelines and infrastructure in the Tommy Lakes area from Enerplus for A$825,000.
Calima says the infrastructure, immediately north of its holdings, will provide access to the NorthRiver Midstream pipeline and Jedney processing plant, as well as access to the NGTL, Alliance, and T-North pipeline networks.
“This is a significant strategic acquisition that gives the Company access to markets in a very cost-efficient manner," said Calima managing director Alan Stein.
"The Calima Lands are now ready for development once a funding partner is secured."
Calima began testing the prospects of its 72,000-acre lease holdings last year.
The Tommy Lakes infrastructure includes gathering pipelines, compression facilities, and associated facilities capable of transporting up to 50 Mmcf/d of gas and 1,500-2,000 bbls/d of well-head condensate, Calima said.
The replacement value of the infrastructure is A$85 million, and the cost of acquisition includes shutting down the facilities and payment of a refundable performance bond to the Oil & Gas Commission, Calima said.
The facilities will be placed into suspension until a partner or financing is finalized, Calima said.
"With gas prices showing consistent increases over the last 6 months development economics are showing steady improvement," said Stein.
"With a replacement value of $85 million the re-use of Tommy Lakes significantly reduces capital cost however, just as importantly, avoids the time involved in permitting and constructing new facilities."
Calima says it has also entered into an option agreement to acquire 11 gas wells on or before April 1, 2022, in the Tommy Lakes field. Those wells could be used for fuel to start-up the facilities if needed, the company said.
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