December 14, 2009 / 10:03 PM / 8 years ago

Arc Energy bolsters Ante Creek with C$180 mln buy

CALGARY, Alberta, Dec 14 (Reuters) - Arc Energy Trust AET_u.TO on Monday agreed to pay C$180 million ($169 million) in cash to acquire a general partnership producing natural gas in northern Alberta, boosting its production and adding reserves and exploration lands near its own holdings.

Arc said it has agreed to buy all the units of a general partnership that operating in the Ante Creek region of northwestern Alberta for cash.

The trust intends to pay for the purchase by selling 10.3 million units to underwriters, raising gross proceeds of C$200 million.

The acquisition adds 2,000 barrels of oil equivalent per day of new production -- rising to 2,500 boed next year -- and adding to the 5,000 boed that Arc already produces in the Ante Creek area. It also brings 7 million barrels of proved reserves and boosts the trust’s portfolio of exploration lands by 20 percent.

”This acquisition significantly increases our land position in the Ante Creek region, which is a key growth area for us,: John Dielwart, Arc’s chief executive said in a statement.

Arc said the acquisition will close later this month and is expected to increase its 2010 production forecast to 70,500 to 72,500 boed from its previous 68,000 to 70,000 boed target.

It expects average production of 63,500 boed this year.

The units Arc is selling to a group of underwriters led by RBC Capital Markets are priced at C$19.40 each and is expected to close on January 5.

Arc units rose 74 Canadian cents to C$19.97 on Monday on the Toronto Stock Exchange. ($1=$1.06 Canadian) (Reporting by Scott Haggett; Editing by Frank McGurty)

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