(MENAFN- ProactiveInvestors - Australia) Transerv Energy (ASX: TSV) has acquired a further 3,846 acres of land in the Montney oil trend in British Columbia, for $180,762, or an average of $47 per acre.
This compares with the $230 to $600 per acre price paid by other operators for adjacent lands.
Carnaby Energy, Transerv's 64% Canadian subsidiary, now holds 54,111 net acres in the Two Rivers area.
Independent resource and reserves assessors McDaniel & Associates had recently estimated that Carnaby's Montney acreage â€" excluding the latest acquisition â€" held Best Estimate Contingent Recoverable Resources of 2.8 million barrels of oil equivalent (MMboe) with Best Estimate Prospective Resources of 55MMboe providing upside potential.
Industry activity in the area continues to increase and continues to reinforce the oil potential of the Montney zone.
Nearby operator Arc drilled 8 wells in 2012 and last month has requested drilling licenses for 8 more wells in the Montney Oil Trend.
Crew, the other active operator in the area, has announced plans to drill 11 wells this year.
Both companies have indicated they are also undertaking significant facilities additions to handle the expected new volumes of oil and gas.
Nearby wells have produced at rates of between 260 and 908 barrels of oil or 130 barrels of condensate per million cubic feet of gas per day.
This continuing activity combined with the McDaniel's review, reinforces the significant potential of the Carnaby Montney lands.
Legal Disclaimer:
MENAFN provides the information “as is” without warranty of any kind. We do not accept any responsibility or liability for the accuracy, content, images, videos, licenses, completeness, legality, or reliability of the information contained in this article. If you have any complaints or copyright issues related to this article, kindly contact the provider above.