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Spartan buys Saskatchewan light oil assets from ARC for US$522 million

Spartan buys Saskatchewan light oil assets from ARC for US$522 million

Report summary

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.

What's included?

This report includes 1 file(s)

  • Spartan buys Saskatchewan light oil assets from ARC for US$522 million PDF - 288.39 KB 5 Pages, 8 Tables, 0 Figures


The upstream oil and gas industry conducts activities against a backdrop of growing energy and environmental challenges. Political instabilities, international conflicts and government and environmental regulation have all impacted the production process.

This has forced companies to re-examine their corporate strategy, moving away from high-risk exploratory drilling to lower-risk exploration in mature basins as they search for increased returns.

This Upstream Oil and Gas Deal Insight report provides an in-depth analysis of this deal. You will also find information about upstream assets and the strategic rationale behind the deal.

For investors and businesses, this deal insight report provides an understanding of the effect this deal will have on the market, including oil and gas pricing and assumptions. Use it to keep up to date with deal announcements, gain expert insights and analyse potential developments that might affect your strategy.

Wood Mackenzie goes beyond company-reported data and announcements to give you an independent and informed view. Our unique valuation metrics are underpinned by our deep understanding of upstream assets and companies. We help you objectively benchmark and evaluate asset and corporate deals so you can compare deal economics around the world.

  • Executive summary
  • Transaction details
  • Upstream assets
  • Deal analysis
  • Strategic rationale
    • Spartan Energy
    • ARC Resources
  • Oil & gas pricing and assumptions

In this report there are 8 tables or charts, including:

  • Executive summary
    • Executive summary: Table 1
  • Transaction details
  • Upstream assets
    • Upstream assets: Table 1
  • Deal analysis
    • Deal analysis: Table 1
    • Deal analysis: Table 2
    • Deal analysis: Table 3
    • Deal analysis: Table 4
  • Strategic rationale
  • Oil & gas pricing and assumptions
    • Oil & gas pricing and assumptions: Table 1
    • Oil & gas pricing and assumptions: Table 2
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