Spartan buys Saskatchewan light oil assets from ARC for US$522 million
On 17 November 2016, ARC Resources announced the sale of non-core oil and gas assets to Spartan Energy Corp for a cash consideration of US$522 million (Cdn$700 million). The assets, which currently produce 7,500 boe/d (98% liquids), are a good fit with Spartan's existing acreage in southeast Saskatchewan, bolster its reserves, and improve its footprint in the region. Operational synergies are likely as Spartan owns properties adjacent to those included in the transaction. The deal increases Spartan's PDP reserves by 91% and 2P reserves by 62%. For ARC, the sale fits with its recent strategy of divesting non-core assets to focus development and capital on its profitable Montney acreage and other core Alberta developments.