In total, the Company is acquiring 21,627 gross acres (13,150 net acres) of land located in the heart of the emerging Slave Point formation tight oil play. The assets bring over 50 net low-risk Slave Point horizontal drilling locations along with approximately 70 bbls/d of light oil production and associated producing infrastructure.
The assets are consistent with the Company's strategy of focusing capital on top tier light oil resource style plays in the provinces of Alberta and Saskatchewan, using its considerable in-house technical experience to aggressively exploit the significant upside with latest multi-stage fracturing technology.
With these acquisitions, the Company now has an inventory of over 65 tight oil drilling locations in its two core operating areas targeting the Slave Point in Alberta and the Bakken in Southeastern Saskatchewan. Based on the Company's internal estimates, the acquisitions provide exposure to over 7,500 boepd of net production, using a 3 month initial production average.
The Company will provide further guidance as to its capital plans after its annual general and special meeting which is being held at the Hamilton Room at the Bow Valley Square Conference Centre - 300, 255 - 5th Avenue S.W. Calgary, Alberta on July 21, 2010 at 10:00 am (Calgary time).