Pieridae acquires Shell Canada’s Alberta production assets for $144m

Canadian oil and gas exploration firm Pieridae Energy has acquired Shell Canada’s midstream and upstream assets in the Alberta Foothills area for C$190m (approximately $144m).

The deal comprises three of the Shell’s Alberta assets in Jumping Pound, Caroline and Waterton.

These assets produce 29,000boe/d. Pieridae also now owns a 14% working interest in the Shantz sulphur forming plant that is tied to the Caroline gas facility, as well as 1,700km of pipelines.

The company’s subsidiary Ikkuma Resources will operate the acquired Foothills assets.

The acquisition will enable Pieridae to have a rich drilling inventory of multiple dry gas and liquids-rich gas reservoirs in the Foothills.

Furthermore, the company will be able to raise an anticipated $1.5bn of German Government-supported guarantees, which would be used towards conventional gas supply development.

Through the addition of Alberta assets, Pieridae will create a roadmap to build the $10bn Goldboro LNG Project in Canada.

Pieridae Energy CEO Alfred Sorensen said: “We are very pleased to close this deal as it helps us secure the majority of the gas needed to supply the first train at Goldboro.

“We will complete our work with KBR to develop a fixed price contract to build Goldboro, then finalise project financing and make a final investment decision.”

As part of the acquisition, Shell will retain a 60% ownership interest in Shantz plant, and maintain its sulphur, natural gas liquids and condensate sales, and marketing businesses.

Shell Canada president and country chair Michael Crothers said: “Shell has built a strong foundation of reliable, competitive and safe sour gas operations in Alberta over many decades.”

In June, Pieridae initially signed the agreement related to this acquisition with Shell.