Calgary, Alberta-based Pieridae Vitality Restricted has accomplished the sale of its Goldboro belongings in a transfer to give attention to its upstream and midstream companies.
The money consideration for the transaction was $8.67 million (CAD 12.0 million), topic to regular closing changes, Pieridae mentioned in a information launch. The client of the belongings was not recognized.
In November, 2023 Pieridae introduced the sale of its Goldboro subsidiary and related belongings, licenses and permits, highlighted by 267 acres of undeveloped coastal industrial land in Nova Scotia. The corporate earlier mentioned that the sale is a part of its strategic pivot away from east coast liquefied pure fuel (LNG) and in the direction of an Alberta-focused pure fuel manufacturing and processing enterprise.
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Pieridae famous that it has now accomplished the shift to give attention to working and rising its pure fuel, pure fuel liquids (NGL) and sulfur manufacturing and optimizing its midstream processing services within the Foothills area of Alberta.
Pieridae has additionally issued a discover to repay in full its subordinated secured bridge mortgage. “The steadiness of the bridge mortgage compensation in extra of the Goldboro Sale proceeds will likely be funded by the corporate’s present liquidity,” it acknowledged.
Darcy Reding, Pieridae President and CEO, mentioned, “We’re excited to conclude the sale of Goldboro, an necessary step in concentrating our technique onto our upstream and midstream companies. We’re additionally more than happy with the continued help of our lenders and of AIMCo [Alberta Investment Management Corporation], who’ve every made extra commitments to allow the compensation of the best value mortgage in our capital construction. Pieridae will likely be stronger financially with a decrease danger profile and a clearer funding proposition that advantages our shareholders”
In the meantime, Pieridae has initiated the shut-in of roughly 6,250 barrels of oil equal per day (boepd) of uneconomic bitter fuel manufacturing in its Central Alberta core space as a consequence of extraordinarily low Alberta Vitality Firm (AECO) pure fuel costs and excessive processing prices. The manufacturing flows to a third-party processing facility. The corporate mentioned it “regularly evaluates the financial efficiency of its producing belongings to optimize web working revenue in periods of sustained low commodity costs”.
In Might, Pieridae shut in roughly 750 boepd of manufacturing from its Ekwan discipline in northeast
Pieridae mentioned in an earlier information launch that every one personnel within the impacted space have been evacuated safely.
Pieridae is a Canadian vitality firm headquartered in Calgary, Alberta. It describes itself as an upstream producer and midstream customized processor of pure fuel, pure fuel liquids (NGLs), condensate, and sulfur from the Canadian Foothills and adjoining areas in Alberta and northeast British Columbia. Pieridae’s imaginative and prescient is to offer accountable, reasonably priced pure fuel and derived merchandise to fulfill society’s vitality safety, it mentioned.
In response to Pieridae’s web site, it is among the largest Foothills producers in North America. Its upstream belongings make up a few of the greatest standard fuel reservoirs within the area. Throughout Alberta and British Columbia, its footprint stretches over a million gross acres of land; with possession of three deep minimize fuel vegetation and greater than 3,800 kilometers of pipelines. It produces roughly 40,000 – 45,000 boepd consisting of roughly 200 million cubic ft per day of fuel and 8500 barrels per day of liquids.
To contact the writer, e mail rocky.teodoro@rigzone.com
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