Spruce Ridge Acquires Oil And Gas Wells From Repsol Canada Energy Partnership

Spruce Ridge Resources Ltd. (TSXV: SHL) Friday announced that it has agreed to purchase oil and gas facilities within the Unity area of SW Saskatchewan from Repsol Canada Energy Partnership. The purchase includes 793 ha of natural gas and petroleum rights from the base to the surface of the Mannville Group. The deal carries an average working interest of 84%.

Included in the purchase are heavy oil facilities, pipelines, 5 active oil wells, 10 suspended oil and gas wells, and an active produced water disposal well. The agreement comes with a price tag of $50,000 cash and certain overriding royalties on the production of petroleum material. The price tag takes into account Spruce Ridge’s responsibility for environmental liabilities as well.

Production at the oil and gas wells comes primarily from the McLaren Formation in the Cretaceous Mannville Group, with production occuring at a depth of roughly 660 metres. Net pay of 2 to 4.5 metres is the average in the Salt Lake McLaren pool. The majority of the wells are directional wells with cold, heavy oil production. 

Reportedly, the McLaren pool is well-defined from 3D seismic readings and the property has noteworthy undeveloped resource potential.

Spruce Ridge Resources Ltd. last traded on the TSX Venture at $0.16.


FULL DISCLOSURE: Spruce Ridge Resources is a former client of Canacom Group, the parent company of The Deep Dive. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security.

Video Articles

Silver’s Finally Breaking the System | Keith Neumeyer – First Majestic

The Best News for Gold Was the Drop! – Peter Grandich

McEwen Copper: The Los Azules Feasibility Study

Recommended

Silver47 Completes Property-Wide Geochemical, Rock Sampling Program At Adams Plateau, Identifies Numerous Targets

Altamira Gold Identifies Presence Of Second Mineralized Porphyry Body At Cajueiro

Related News

Spruce Ridge Hits 27.2 Metres Of 8.02% Copper At Great Burnt

Spruce Ridge Resources (TSXV: SHL) this morning announced that it has completed a 3,100 metre...

Monday, December 21, 2020, 09:09:22 AM

Spruce Ridge Amends Option Agreement On Two Newfoundland Properties

Spruce Ridge Resources (TSXV: SHL) this morning announced that it has amended an option agreement...

Tuesday, September 15, 2020, 10:40:40 AM

Market Movers: Spruce Ridge Goes For A Run On Back Of Canada Nickel Corp

Spruce Ridge Resources (TSXV: SHL) is one of today’s biggest movers, with the equity currently...

Tuesday, July 28, 2020, 12:04:39 PM

Spruce Ridge To Commence 2020 Drill Program Next Week

Spruce Ridge Resources (TSXV: SHL) this afternoon announced that diamond drilling is to begin next...

Friday, September 18, 2020, 01:05:29 PM

Hitting Big Copper Results In Newfoundland – The Daily Dive feat John Ryan of Spruce Ridge Resources

Kicking the week off on the Daily Dive is that of John Ryan, CEO of...

Monday, January 18, 2021, 01:30:00 PM