Crew Energy has entered into a purchase and sale agreement to dispose of its Princess, Alberta asset for total cash consideration of CAN$ 150 million. This will allow the company to focus on the development of its core Montney assets in British Columbia.
The Princess Disposition is scheduled to close on or about 30 September 2014, subject to satisfaction of customary industry closing conditions. The proceeds from the transaction will be used to expand Crew’s 2014 Montney capital program by CAN$ 20 million, and repay bank debt.
Crew currently holds existing capacity, or is in advanced commercial agreement negotiations on all three of the major pipeline systems in the Montney region: the Alliance pipeline system; the Spectra Westcoast system; and the Trans-Canada Pipeline Nova System.
This allows Crew to benefit from both market and operational diversification, and also positions the company to serve the many proposed North American West Coast LNG pipeline projects.
The company noted: “With its long term drilling potential coupled with significant take-away capacity, Crew is exceptionally well positioned to deliver its growing product stream into various markets, such as the Pacific Northwest, the TCPL AECO market, the upper mid-west market in the Chicago area, as well as potential LNG demand along the West Coast of Canada and the United States.”
Adapted from press release by Katie Woodward
Read the article online at: https://www.lngindustry.com/liquid-natural-gas/28082014/crew-energy-to-focus-on-montney-assets-in-bc-1300/