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Torxen, Schlumberger Jointly Acquire Palliser Property for $1.0B

Announced Date
October 19,2017
Deal Value  $mm
1,000
Net Acres
800,000
Transaction Type
Property
Buyer
Schlumberger Limited,Torxen Resources
Seller
Cenovus Energy Inc.
Price Per BOE $
40,000
Source Documents:
   Source Link
   Source Link
Location
Region
Canada

Country
Canada

Production & Reserves
Production
54 Mboe/d


Deal Metrics
$/Daily BOE
18,518.51

$/Acre
1,250

Transaction Details: 

[Summary: Torxen and Schlumberger have agreed to acquire the Palliser Block located in Alberta, Canada, from Cenovus Energy for US$1.0 billion.

Schlumberger will be the majority non-operating owner, with the rights to exclusive service provision and Torxen will be the operator. The oil-focused development strategy includes a multiyear drilling program of more than 1,600 oil wells starting in 2018.

The Palliser Block consists of oil and gas wells, surface facilities, a pipeline network, and approximately 800,000 acres of oil and gas development rights. The asset has current production of approximately 54,000 BOE/d.

The Palliser Block borders the acreage awarded to the Schlumberger Production Management (SPM) and Torxen joint venture established earlier this year.]

Original Release:

Torxen Energy (“Torxen”), a private Canadian E&P company, and Schlumberger have entered into a definitive agreement for the purchase of the Palliser Block located in Alberta, Canada, from Cenovus Energy (“Cenovus”), an integrated Canadian oil company, for cash consideration of approximately $1 billion (CAD 1.30 billion).

The Palliser Block consists of oil and gas wells, surface facilities, a pipeline network, and approximately 800,000 acres of oil and gas development rights. The asset has current production of approximately 54,000 BOE/d. The Palliser Block borders the acreage awarded to the Schlumberger Production Management (SPM) and Torxen joint venture established earlier this year.

Under the agreement, which is subject to customary closing conditions, Schlumberger will be the majority non-operating owner, with the rights to exclusive service provision and Torxen will be the operator. The oil-focused development strategy includes a multiyear drilling program of more than 1,600 oil wells starting in 2018.

Patrick Schorn, Executive Vice President New Ventures, Schlumberger, commented, “Schlumberger is very pleased to partner with Torxen in the Palliser Block. By leveraging our reservoir knowledge, oilfield services technology and project management expertise, we expect to lower development costs and maximize the value of this asset—in a market where our traditional business model is challenged to deliver the required financial returns.”

Canada Deal Activity In Last 12 Months



Related Canada Region's Deals



Announced DateBuyerSellerDeal Value($mm)LocationCategoryDetails
Jan-16-2018 Vermilion Energy Inc.  Not Disclosed 90.8   E&P Details
Dec-29-2017 Georox Resources Inc.  Not Disclosed 4.5 Saskatchewan  E&P Details
Nov-14-2017 Whitecap Resources Inc.  Cenovus Energy Inc. 941 Saskatchewan  E&P Details
Nov-01-2017 Sprott Toscana  Not Disclosed 1.6 Alberta  E&P Details
Oct-26-2017 Surge Energy Inc  Not Disclosed 37.5 Alberta  E&P Details

Related Canada Deals



Announced DateBuyerSellerDeal Value($mm)LocationCategoryDetails
Nov-01-2017 Sprott Toscana  Not Disclosed 1.6 Alberta  E&P Details
Oct-26-2017 Surge Energy Inc  Not Disclosed 37.5 Alberta  E&P Details
Oct-16-2017 Pulse Oil  Not Disclosed Alberta  N/A Details
Sep-25-2017 International Petroleum Corp.  Cenovus Energy Inc. 512 Alberta  E&P Details
Sep-13-2017 Manitok Energy Inc.  Corinthian Oil Corp. Alberta  E&P Details

Price History



Date Deal Headline Price$/acre
Nov-01-2017 Toscana Energy Announces Sale of 8,300 Acres in Alberta $1.60  $192
Oct-26-2017 Surge Acquires 3,200 Acres in Central Alberta $37.50  $11,719
Sep-25-2017 Cenovus Sells Suffield/Southern Alberta Assets for $512 Million $512.00  $5,120

Related Cenovus Energy Inc. Deals



Announced DateBuyerSellerDeal Value($mm)LocationCategoryDetails
Nov-14-2017 Whitecap Resources Inc.  Cenovus Energy Inc. 941 Saskatchewan  E&P Details
Sep-25-2017 International Petroleum Corp.  Cenovus Energy Inc. 512 Alberta  E&P Details
Sep-05-2017 Canadian Natural Resources (CNRL)  Cenovus Energy Inc. 975 Alberta  E&P Details
Mar-29-2017 Cenovus Energy Inc.  ConocoPhillips 13300   E&P Details
Jun-30-2015 Ontario Teachers Pension Plan  Cenovus Energy Inc. 3300 Manitoba  E&P Details

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