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Transerv Energy, Tamaska Oil and Gas progress sale of Alberta shale oil and gas acreage
Wednesday, June 26, 2013 by Bevis Yeo




Transerv Energy (ASX: TSV) and Tamaska Oil and Gas (ASX: TMK) are ready to execute the sale of their Duvernay Shale and Rock Creek acreage interests in Alberta to Canadian Pan Ocean.

The two companies, who will receive about $14.2 million and $3.6 million respectively from the sale, said that terms of the transaction are now settled between the parties.

However, CPO has requested more time to finalise its part of the transaction, which Transerv and Tamaska have agreed to, provided a 10% deposit is paid by 8 July 2013.

Transerv has a 34% interest in the Duvernay Shale acreage and 34% in the Rock Creek while Tamaska has 8% and 16% respectively.

Following completion of the transaction, CPO will kick off a major drilling program over the Duvernay acreage with Mako Hydrocarbons (ASX: MKE) under their Alberta Joint Venture.

This will see the drilling of up to 20 wells over three years to appraise and develop the Duvernay Shale.

Mako’s working interest will be reduced to 12.5% from 50% under the C$220 million farm-in deal.

The Duvernay Shale is an emerging world class liquids rich resource play that is the source rock for most of the conventional oil fields in Alberta that has attracted the attention of companies such as ExxonMobil (NYSE: XOM), Sinopec Daylight, Encana Corporation (TSE: ECA), Talisman Energy (TSE: TLM) and ConocoPhillips (NYSE: COP).

It came to prominence in 2010 and 2011 when more than C$2 billion was spent in land auctions for mineral rights and is widely considered to be analogous to some of the most prospect U.S. shale plays.

Wells drilled in the Duvernay have production at initial rates ranging from 900 to 1200 barrels of oil equivalent per day with high ratios of valuable natural gas liquids. Recent horizontal wells have yield between 100 barrels and 200 barrels of natural gas liquids for every million cubic feet of gas produced.