Pine Cliff Power Ltd. has secured an settlement to ship pure fuel to an undisclosed personal firm’s knowledge deliberate knowledge middle in Alberta.
Pine Cliff mentioned in a information launch that it has entered into definitive agreements with a personal firm for the provision of between 3.2 million cubic toes per day (MMcfpd) and 4.8 MMcfpd of pure fuel for an preliminary time period of 25 years. The monetary particulars of the settlement weren’t disclosed.
The agreements comply with a earlier provide settlement of 33 million cubic meters per yr and 50 million cubic meters per yr, Pine Cliff famous.
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The undisclosed firm is establishing and working a knowledge middle not linked to the Alberta electrical grid and adjoining to an working Pine Cliff facility in Central Alberta, in accordance with the discharge.
Underneath the Provide Settlement, Pine Cliff will present pure fuel and can obtain a pure fuel value based mostly on a rolling 12-month common of NYMEX value. The availability of pure fuel beneath the settlement will start upon the commissioning of the information middle, amongst different issues, the corporate mentioned.
Pine Cliff famous that within the third quarter of 2024, its manufacturing of pure fuel averaged 108.0 MMcfpd.
The availability settlement contains circumstances precedent for the provision and supply of pure fuel on the knowledge middle, which embrace compulsory milestones for the timing of building, receipt of regulatory approvals and timing of the information middle being commercially operational. Failure to satisfy these milestones might end result within the early termination of the settlement and the lease, Pine Cliff said.
Pine Cliff additional famous that the development and operation of the information middle would be the sole accountability of the personal firm and can be topic to relevant regulatory and authorities approvals and permits.
Final month, Pine Cliff accomplished the acquisition of privately held oil and pure fuel producer Certus Oil & Gasoline Inc. for a purchase order value of $72 million (CAD 100.0 million). In keeping with the corporate web site, Certus operates standard mild oil-producing properties with its operations centered on the Sylvan Lake and Caroline areas of Central Alberta.
The acquisition will increase Pine Cliff’s core operations into the Caroline space of Western-Central Alberta, including manufacturing of roughly 5,300 barrels of oil equal per day. The estimated manufacturing of the belongings as of September consists of roughly 51 p.c standard pure fuel, 26 p.c pure fuel liquids (NGLs), and 23 p.c mild and medium crude oil and condensate, with an annual decline fee estimated at 16 p.c.
The acquisition can be anticipated so as to add an initially recognized 31 gross, or 15.4 web, deep basin liquids-rich pure fuel and oil growth areas “which can be anticipated to compete for capital in Pine Cliff’s annual spending program for the subsequent a number of years,” the corporate famous in an earlier information launch.
Pine Cliff additionally entered right into a three-year secured time period debt facility supplied by a personal institutional investor within the quantity of $42.07 million (CAD 56.27 million) to fund a portion of the acquisition value.
Pine Cliff describes itself as an Alberta-based pure fuel and crude oil firm with a long-term view of making shareholder worth.
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