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“ Last year, we completed two major transactions,” Sue continues.“ One involved adding a new core area targeting the Mannville Stack in the Cold Lake area, leveraging our expertise with the multi-lateral drilling technology that had proved successful in the Clearwater formation. This expansion came through acquiring a company named Buffalo Mission, which added daily heavy oil production of about 2,500 barrels per day, taking our total heavy oil production to over 7,500 barrels a day.
“ As a mechanism to re-establish financial flexibility after the Buffalo Mission acquisition, we decided it was the right time to look at recombining Perpetual into the fold of Rubellite. At the time, Perpetual produced over 4,000 barrels of oil equivalent( BOEs) per day, primarily consisting of gas and liquidsrich gas. From our point of view, this decision was well-timed and enabled us to leverage the available financial capacity on Perpetual’ s balance sheet. Furthermore, it gave us a certain degree of commodity diversification during what we believed to be the low point for the gas price cycle. The integration also brought about operational and administrative synergies. Since the completion of this transition on November 1st, we have evolved into a company producing 12,000 BOE per day, comprising around 8,000 BOEs of heavy oil production and 4,000 BOEs of gas and natural gas liquids,” Sue enlightens.
Optimization strategies
As a few years have passed since the inception of Rubellite and with the recombination transaction bringing Rubellite and Perpetual back together, Sue reflects on the changes that have followed within the company.“ We are a stronger company with a clear business plan and well positioned for another level of growth. At Rubellite, our business plan remains the same, focused on robust, organic heavy oil growth utilizing multi-lateral drilling technology, with Perpetual increasing our
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