Baytex Energy is spending $65 million to more than double its land in the Peace River area. The assets are right next to their current property, but the seller has not been named.
The deal is expected to add an extra 3,000 barrels of oil a day to their production. Another 3,000 is currently shut in, and Baytex anticipates paying $30 million over the next couple of years to bring that back on line, as long as crude prices are “favourable.”
Overall, their production in the region is expected to increase by roughly 20 per cent. The sale should close by the end of the year.