Razor Energy Corp. announced that it has completed the acquisition of certain non-operated working interest positions in the Kaybob area.
Razor Energy Corp. (TSXV:RZE) announced that it has completed the acquisition of certain non-operated working interest positions to consolidate its existing Kaybob Triassic Units 1 and 2 from an arm’s length company for cash consideration of $4.9 million.
As quoted in the press release:
The Kaybob Assets are characterized by low decline, light oil focused production with abundant infrastructure that directly complement Razor’s existing asset portfolio. The Acquisition has been funded with Razor’s existing cash reserves.
The Acquisition increases Razor’s operated working interest position in:
- Kaybob Triassic Unit #1 from 52.95% to 93.48%; and
- Kaybob Triassic Unit #2 from 73.25% to 100.00%.
On a pro forma basis including this acquisition, using field production estimates, the Company expects January 2018 production to exceed 4,900 boe/d, of which 85% is light oil and natural gas liquids.
The Acquisition consolidates and enhances Razor’s existing asset base with reactivation and re-entry opportunities, in addition to future drilling upside with proven deliverability of light oil from the Montney formation.
The Acquisition has an effective date of November 1, 2017.
Haywood Securities Inc., Canaccord Genuity Corp. and Eight Capital acted as strategic advisors to Razor in respect of the Acquisition.