TAQA North Begins Operations
Beginning today, Abu Dhabi National Energy Company (ADSM: TAQA) will own and operate TAQA North Ltd, following the completion of the acquisition of Northrock Resources Ltd, a subsidiary of the US firm Pogo Producing Company (NYSE: PPP) for US$2 billion.
The new entity, TAQA North, is set to 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.
As a Calgary-based oil and gas exploration production company, TAQA North has access to significant development and exploration opportunities in Saskatchewan and Alberta, with key exploration plays in Canada's Northwest Territories, British Columbia and the Alberta Foothills.
“We are delighted to begin a new era with TAQA North, with a launch that adds significantly to TAQA’s positioning as a reliable global energy partner,” said Peter Barker Homek, chief executive officer, Abu Dhabi National Energy Company.
“In addition to the important proven, producing reserves and the potential exploration acreage position that the acquisition adds to our overall capacity, we will also benefit significantly from the human resources of TAQA North – its community of talented geoscientists and engineers,” he added.
This transaction, announced in May 2007, contributes significantly to TAQA’s growth strategy to acquire power and water facilities around the world, to further develop its significant international presence. Moreover, the acquisition was determined to be of net benefit to Canada under the Investment Canada Act. In that regard, TAQA made significant commitments to the Minster of Energy, including improvements of capital expenditures. TAQA is also examining the feasibility of introducing wind power systems on the TAQA North properties and has made commitments to maintain levels of employment and participation by Canadians in the continued operations of TAQA North.
Over the previous three years, Northrock 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, TAQA North is expecting production of 37,700 boe/d.
Reserves for TAQA North (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.
The completed acquisition of Northrock Resources is another major step forward for TAQA, which earlier this year began operation of TAQA Energy B.V., following the acquisition of BP Nederland Energie B.V, and of CMS Generation Co.