New Zealand's Fletcher acquires Canadian hydrocarbon-producing land

Fletcher Challenge Energy, a New Zealand-based oil and gas firm, said it had acquired a 124,800-acre parcel of hydrocarbon-producing land in Canada's Saskatchewan district for C$ 23.25 mm. The property currently produces 250 bpd of oil and about 5 mm cfpd of gas, Fletcher Energy said.
The company said the acquisition was part of its program to improve the quality of its Canadian exploration and production portfolio. Of the 124,800 acres, 38,400 acres are undeveloped. Fletcher Energy's " working interest" in the properties is about 85 %.
The properties come with "extensive seismic survey information" and include five developed areas with infrastructure complementary to assets already owned and operated in the area by Fletcher Energy.

The company said it expected fast pay back from the investment as a result of the currently high prices for oil and gas as well as plans to accelerate development of the properties. Development had already begun, the company said, with plans to drill 12 heavyoil wells by early July with the objective of production starting in August.
The Fletcher Challenge Group is a New Zealand head quartered company with operations in building, energy, forests and paper represented by targeted equity securities. The paper division was sold to Norway's Norske Skog or NZ$ 5 bn in early April. The restructure of the remaining three divisions is expected to be completed by the end of 2000.