Blue Sky Global Energy (BGE) has signed a letter of intent with Blue Sky Resources to fully acquire oil and gas assets in British Columbia (BC) and Alberta, Canada.

BGE received 50% interest on these assets by May last year.

The total purchase price of the remaining 50% interest in BC assets and 50% equity in Alberta assets is C$19 million, depending on financing and other standard conditions.

After the transaction is completed, BGE will become the operator of the assets.

The acquisition includes advanced light oil assets, with multi-zone production from 64 holes and 97% light sweet oil, with API gravity between 38 and 41.

These assets currently generate about 130 barrels of oil equivalent (BOEPD) per day, mainly from the Small Barrel River and Gillwood Formation, distributed over approximately 14,000 net consecutive acres.

There is strong seismic coverage across the entire asset base and the built infrastructure is in place with a large amount of excess oil handling capacity.

The acquisition process is subject to standard due diligence, indicating warranty and ending conditions.

The finalization of the transaction depends on the approval of TSX Risk Exchange and the successful financing of BGE.

BGE is a publicly traded company with a wide range of oil and gas assets across Canada, Indonesia and Belize.

In addition to BC assets, BGE also holds a 50% non-operating interest in the production assets in northeastern BC.

Internationally, the company owns a production sharing contract for the PAUS neighborhood, spanning about 8,214 kilometers from the city of East Natuna, Indonesia.

In Belize, BGE reached a production-sharing agreement covering approximately 180,000 acres of land in the Corozal Basin, including SBC field discoveries.

In November 2024, the Alberta Energy Regulatory Agency (AER) requested the suspension of operations of Sunshine Oil Sands, covering its wells, facilities and pipelines due to the company's ongoing non-compliance with regulations.

The AER's directive also forced the company to obtain a $609,000 deposit to cover potential liabilities associated with its inactive locations and maintain proper on-site management.

Originally created and published by Offshore Technology, a brand owned by GlobalData, “Blue Sky Acquisition of Oil and Gas Assets in British Columbia and Alberta, Canada.”

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