Barrick Consolidates Sturgeon Lake Oil Assetsadmin
Thursday, August 7th 2008
Barrick Gold Corporation announced that it has entered into a definitive agreement to purchase oil and gas assets representing production of approximately 900 barrels of oil equivalent (BOE) per day at Sturgeon Lake, Alberta, from Daylight Resources Trust for $87.5 million in cash. This transaction follows Barrick’s recent $410 million cash offer for Cadence Energy Inc. and complements the Company’s long term strategy to economically hedge its oil exposure.
Daylight’s Sturgeon Lake assets are adjacent to Cadence’s Sturgeon Lake assets. Barrick will consolidate 100 per cent ownership of the Sturgeon Lake South Leduc pool for the first time since 1953, which will allow for its cost-effective and timely exploitation and development.
This transaction will bring Barrick’s total oil and gas production up to approximately 4,500 BOE per day, which represents about 30 per cent of the Company’s direct annual fuel consumption.
Barrick’s vision is to be the world’s best gold company by finding, acquiring, developing and producing quality reserves in a safe, profitable and socially responsible manner.
Barrels of Oil Equivalent
“BOE” means barrel of oil equivalent on the basis of 1 BOE to 6,000 cubic feet of natural gas. BOEs may be misleading, particularly if used in isolation. A BOE conversion ratio of 1 BOE for 6,000 cubic feet of natural gas is based on an energy equivalency conversion method primarily applicable at the burner tip and does not represent a value equivalency at the wellhead.