The acquisition will add 23,000 barrels of oil equivalent per day to Tamarack’s production next year, according to the company.
“With this transaction, Tamarack will become Clearwater’s leading public company, with an outstanding combined asset base,” said Bill Slavin, CEO of ARC Financial, which owns 85 percent of Deltastream.
Deltastream is a clean project in Clearwater, a new shale oil play where development began just six years ago. The project has seen rapid growth in those six years, with production rising from 4,300 b/d in 2017 to around 60,000 b/d in 2021 and estimates to 70,000 b/d by the second quarter of this year, according to JW. Energy.
The deal will see Tamarack acquire Deltastream for $825 million in cash, $300 million in deferred acquisition payment and $300 million in equity, which includes 80 million Tamarack shares, according to a press release. Clearwater is attracting investors because of the economics that promise a quick payback in less than six months below today’s oil prices, with Tamarack Valley CEO Brian Schmidt calling it the most economical oil play in North America.
“Deltastream brings scale and leading economic development drilling inventory, consisting of high-quality, long-duration assets with low holding capital requirements that enhance capital allocation flexibility,” Schmidt said in the release.
Tamarack is rapidly expanding its footprint in Clearwater, and this latest deal follows a deal in April that saw the company strike a deal to acquire privately held Rolling Hills Energy Ltd for $74 million. This deal gave Tamarack drilling rights covering over 590 square miles.
By Charles Kennedy for Oilprice.com
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