Northern Blizzard acquires Nexen heavy oil properties
Northern Blizzard acquires Nexen heavy oil properties
Northern Blizzard Resources Inc. announces that it has successfully completed the acquisition of all of Nexen Inc.'s heavy oil properties in Western Canada for CAD$975 million (before closing adjustments). These properties produced approximately 15,000 boe/d in the second quarter of 2010. Bank financing was provided by a syndicate of lenders and was co-underwritten by TD Securities and National Bank of Canada. Northern Blizzard is a portfolio company of Natural Gas Partners ("NGP") and Riverstone Holdings LLC ("Riverstone").
John Rooney, Chairman of Northern Blizzard, said "We are very excited about this opportunity to become stewards of one of the great legacy assets in Western Canada. We could not have accomplished this transaction without the initial sponsorship of Natural Gas Partners, and we are pleased that Riverstone Holdings has joined our investor group. We look forward to working with two of the premier energy private equity franchises, and are grateful for their support."
Jim Artindale, President of Northern Blizzard, added "There are three billion barrels of original oil in place ("OOIP") at depths ranging from 600 to 900 meters. Approximately 1 billion barrels of this oil resource is in the Bakken formation, and less than 9% of the OOIP has been recovered to date. We believe that over time we can increase the recoverable reserves substantially, and look forward to investing in this asset."
