Rubellite Energy saw an increase in shares on Friday morning following its announcement of acquiring oil assets and undeveloped land in Alberta. The company spent 34 million Canadian dollars ($24.8 million) on this acquisition.
As of 9:56 a.m. ET, Rubellite Energy’s shares were trading 5.8% higher at C$2.55.
In a statement released on Thursday, the Canadian energy company revealed that it had entered into a definitive purchase and sale agreement to acquire additional Clearwater assets within the Figure Lake and Edwand areas, as well as undeveloped land in the Nixon area of northeast Alberta.
Through this acquisition, Rubellite Energy gains access to approximately 800 barrels of conventional heavy oil production per day. Additionally, the company now holds 215 net sections on the Southern Clearwater play trend.
Anticipated benefits from this acquisition include improved operational efficiency and increased base production by approximately 20%.
Simultaneously, Rubellite Energy has temporarily expanded its credit facility by C$20 million with a lender, bringing it to C$60 million. However, the credit facility will decrease by C$5 million at the end of each quarter next year, ultimately reaching C$40 million by the end of the year.