Tamarack Valley adds to Clearwater oil play position
Tamarack Valley Energy Ltd., Calgary, has agreed to acquire Rolling Hills Energy Ltd., a privately held pure play Clearwater oil producer, for $93 million (Can.) (US $74.4 million). The company also entered into additional agreements to further consolidate its Clearwater formation position in Alberta through the addition of undeveloped lands in the Peavine area.
An initial exploration program on the lands is expected to begin in this year’s third quarter.
The Rolling Hills acquisition fully consolidates Tamarack's working interest and operatorship to 100% in the greater Jarvie play in the southern Clearwater area, the company said in an Apr. 21 release.
The assets include development and exploration potential, with 70 (54.0 net) future development drilling locations across only 1/3 of the 34,560 net acres acquired, the company continued.
Heavy oil production of 2,100 b/d is forecast, while capital of $15-20 million (Can.) is expected to hold production levels flat. Rolling Hills has about 63% of remaining 2022 oil production hedged that ensure a minimum average WTI price over $83/bbl (Can.)
Separately, the company entered a second partnership with the Peavine Metis settlement on an additional 15 net sections (9,600 net acres) of prospective Clearwater land. Together, the strategic Peavine Metis settlement agreements encompass a total of 44.5 net sections (28,500 net acres) of Clearwater land.
Tamarack has amassed 26 net sections (16,640 net acres) in the greater Peavine Clearwater trend. The lands are highly prospective offsetting recent drill results in up to three prospective Clearwater sand intervals, the company said.
The deals follow a February 2022 acquisition of Crestwynd Exploration Ltd. for $222 million (Can.). The assets acquired included certain oil and natural gas properties in the Southern Clearwater area.
