ARC sells Saskatchewan oil-producing assets to Spartan for $700 million

CALGARY – Spartan Energy (TSX: SPE) announced it will spend $700 million to buy southeastern Saskatchewan assets from ARC Resources (TSX:ARX).

The deal between the two Calgary-based companies involves wells producing 7,500 barrels of oil equivalent per day and related oil batteries and gathering pipelines, Spartan said.

It said the purchase will make it one of the largest oil producers in Saskatchewan with expected year-end output of about 20,800 barrels of oil equivalent per day.

Spartan also reported it would raise $505 million through the sale of shares to help pay for acquisition and borrow to pay the rest.

In a separate news release, ARC says it will use the proceeds from the sale of its Saskatchewan properties to advance development of its oil and gas properties in northwestern Alberta and northeastern B.C.