InPlay Oil Corp., Calgary, entered into an agreement mid-February to acquire Cardium light oil-focused assets in the Pembina area of Alberta from Obsidian Energy Ltd., Calgary, for $309 million (Can.).
Consideration will be made up of a $220 million cash payment, $85 million of InPlay common shares, and inclusion of InPlay’s 34.6% non-operated assets in Willesden Green Unit 2 oil field, which would bring Obsidian’s ownership to 99.8% and increase its production by about 150 net boe/d based on fourth-quarter 2024 results.
Under terms of the deal, Obsidian will divest its operated Pembina assets but will retain its non-operated holdings in the Pembina Cardium Unit #11 (PCU#11).
The Pembina assets to be acquired by InPlay include 498 net sections of lands in the Pembina area of Central Alberta, including associated facilities and gathering systems and produce about 10,000 boe/d (68% oil and NGLs).
InPlay said the acquisition would more than double its production to over 18,750 boe/d, with oil production increasing to over 9,500 b/d, and are expected to provide operational synergies as the assets directly offset InPlay’s existing asset in Pembina.
As part of the deal, Obsidian Energy has agreed to drill four wells on two pads in the Pembina area during first-quarter 2025 at InPlay’s expense. All rights for the wells and associated infrastructure will be transferred to InPlay upon the deal’s closing, which is expected in April 2025 subject to approvals and conditions.
