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    Canada’s Spartan Delta exits Montney for Deep Basin


Majority of Montney assets will be sold, remainder spun out to new subsidiary.

by: Dale Lunan

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Canada’s Spartan Delta exits Montney for Deep Basin

Canada’s Spartan Delta said March 28 it will sell C$1.7bn (US$1.24bn) of liquids-rich Montney assets to Crescent Point Energy and spin out other Montney assets to focus on the Deep Basin, where it will have about 40,000 barrels of oil equivalent (boe)/day of production, 71% of which – about 170mn ft3/day – will be natural gas.

It will also retain operatorship of the O’Chiese Nees-Ohpawganu’ck deep cut gas plant in the Deep Basin and will have about 65% of its 2023 natural gas production hedged at an average of C$4.45/GJ.


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The all-cash sale to Crescent Point, a liquids-focused producer active mainly in southeast Saskatchewan, includes 362 net sections of Montney land in Gold Creek and Karr and estimated sales volumes of about 33,198 boe/day (44% natural gas) over January and February this year. The effective date of the sale is May 1, and closing is anticipated on May 10.

“Over the past five years, we have fundamentally rebuilt and strengthened Crescent Point,” CEO Craig Bryksa said. “As a result of our efforts, and after closing this transaction, our asset base will include significant inventory depth in both the Kaybob Duvernay and the Montney, while also maintaining significant low-decline assets in Saskatchewan that provide additional excess cash flow.”

In addition to the Montney sale, Spartan Delta said it will spin out 193,000 net acres of high working interest (95%) Montney Crown lands across the Simonette and Pouce Coupe properties in Alberta and Flatrock in BC and 4,500 boe/day of balanced production to a new wholly-owned subsidiary, Logan Energy.

Logan Energy will be led by Rick McHardy as CEO and Brendan Paton as COO alongside certain other members of Spartan’s existing executive team. Spartan Delta will continue to be led by CEO Fotis Kalantzis.

Spartan Delta shareholders will receive a dividend of C$9.50/share in connection with the sale to Crescent Point and one common share and one common share purchase warrant of Logan. They will also receive a special dividend of C$0.10/share in July 2023.

“I am pleased to announce the successful conclusion of our strategic repositioning process with our core Montney development asset sale, the creation of a new growth-focused Montney junior company and the retention of our sustainable free funds flow and dividend generating assets in the Deep Basin,” Kalantzis said. 

Spartan shareholders will consider the Logan transaction and related financing at the company’s annual and special meeting on May 16.