TAQA to acquire Northrock Resources Ltd.
The Abu Dhabi National Energy Company (ADSM: TAQA) announced today the purchase of Northrock Resources Ltd, a subsidiary of the US firm Pogo Producing Company (NYSE: PPP) for US$2 billion.
When finalized, the deal will provide TAQA with an additional 142 million barrels of proven oil and gas reserves, over 37,000 boe/d (gross) and a best-in-class exploration and production team.
Calgary based Northrock Resources Ltd. (“Northrock”) is a Canadian oil and gas exploration company with operations in the Western Canadian Sedimentary Basin. Operations are conducted through Northrock, a wholly owned subsidiary of Pogo Producing Company (“Pogo”) of Houston, Texas. Pogo acquired Northrock in a share transaction that was concluded on September 27, 2005.
Over the previous 3 years, Northrock has averaged 35,683 boe/d, consisting of 19,219 bbls/d of oil, condensate and natural gas liquids and 98.8 mmcf/d sales gas (46% gas). For 2007 Northrock is expecting production of 37,700 boe/d.
Reserves for Northrock (SEC compliant using Ryder Scott pricing) at year end 2006 were 142,008 mboe of proven working interest reserves, consisting of 80,079 mbbls of oil, condensate and natural gas liquids and 371,572 mmcf of sales gas.
“Northrock provides the ideal entry vehicle to Canada for TAQA”, said Peter E Barker-Homek, chief executive officer of TAQA. “The total land holding within the portfolio is c.2.6MM acres, providing ample growth opportunities for the business,” Barker-Homek went on to add.
TAQA carries an Aa3 and A+ credit rating and was recently presented Emerging Market Deal of the Year and Middle East Corporate Bond of the Year 2006 awards by EuroWeek.