Schlumberger: Torxen Energy and SLB sign agreement
Torxen Energy (“Torxen”), a private Canadian E&P company, and Schlumberger have entered into a definitive agreement for the purchase of the Palliser Block located in Alberta, Canada, from Cenovus Energy (“Cenovus”), an integrated Canadian oil company, for cash consideration of approximately $1 billion (CAD 1.30 billion).
The Palliser Block consists of oil and gas wells, surface facilities, a pipeline network, and approximately 800,000 acres of oil and gas development rights. The asset has current production of approximately 54,000 BOE/d. The Palliser Block borders the acreage awarded to the Schlumberger Production Management (SPM) and Torxen joint venture established earlier this year.
Under the agreement, which is subject to customary closing conditions, Schlumberger will be the majority non-operating owner, with the rights to exclusive service provision and Torxen will be the operator. The oil-focused development strategy includes a multiyear drilling program of more than 1,600 oil wells starting in 2018.
Patrick Schorn, Executive Vice President New Ventures, Schlumberger, commented, “Schlumberger is very pleased to partner with Torxen in the Palliser Block. By leveraging our reservoir knowledge, oilfield services technology and project management expertise, we expect to lower development costs and maximize the value of this asset—in a market where our traditional business model is challenged to deliver the required financial returns.”