Terra Energy has engaged Macquarie Tristone and Scotiabank to seek proposals for divesting up to 100% of its share of assets of NorAm Energy Worx Inc. This represents approximately 140,000 net acres of Montney lands in northeastern British Columbia in the form of a sale or joint venture.
This is an early stage exploration and development opportunity with minimal production and reserves assigned within an established unconventional play.
Terra Energy is operator for most of its land base and holds approximately 75% working interest through its wholly owned subsidiary, NorAm Energy Worx Inc.
Lands include the areas of Farrell Creek/Attachie, Monias, Groundbirch, Hudson, Mica, Inga/Boudreau and Stoddart/Eagle.
Montney petroleum and natural gas rights are included for all NorAm lands plus Doig and other rights offered on some of the lands.
NorAm Energy is comprised of three divisions:
Montney Energy Worx, representing approximately 101,000 net acres in the natural gas and natural gas liquids play of the Montney;
Montney Petroleum Worx, representing approximately 38,000 net acres in the petroleum/condensate play of the Montney; and,
NorAm LNG Inc., currently assessing feasibility of an LNG export facility in the Kitimat area of the west coast of British Columbia.
A resource assessment for NorAm Montney lands conducted in October 2010 by GLJ Petroleum Consultants resulted in an estimate of 11.9 Tcf net of Total Petroleum Initially-in-place (PIIP) based on only a portion of current acreage and assuming (predominately) only one Montney interval. The Total PIIP consists of discovered PIIP of 5.4 Tcf net and undiscovered PIIP of 6.4 Tcf net.
Offsetting Montney lands are being developed by competitors with multiple horizontal laterals drilled in up to three Montney intervals.