CALGARY, Alberta Nov 22 Mid-sized Canadian oil
producer Baytex Energy Corp has agreed to buy heavy oil
production assets in the Peace River region of northern Alberta
in a deal worth C$65 million ($48.35 million), the company said
The predominantly heavy oil assets are adjacent to Baytex's
existing Peace River lands and would add around 3,000 barrels of
oil equivalent per day to its total production of 67,000 boepd,
the Calgary-based company said in a statement.
The seller was not identified and Baytex did not immediately
respond to a request for comment.
The deal includes 3,000 boepd of production that has been
shut in due to subdued oil prices and regulatory requirements.
Baytex said bringing those volumes back online would cost
around C$30 million, and it expected to restart that production
over the next few years as long as crude prices were
The acquisition, which is expected to close by the end of
the year, would more than double Baytex's land position in the
Peace River region, one of its core operation areas. Its other
major regions include Lloydminster on the Alberta-Saskatchewan
border and Eagle Ford in Texas.
Baytex said it would fund the acquisition through a C$100
bought deal financing with a syndicate of underwriters co-led by
Scotia Capital Inc and RBC Capital Markets.
($1 = 1.3443 Canadian dollars)
(Reporting by Nia Williams; Editing by Richard Chang)