Sinoenergy to Invest Additional $380mn in Canada's Long Run Exploration
China’s Sinoenergy Corporation has committed to providing an additional C$500mn ($380mn) over two years to support operations of the Canadian intermediate oil and natural gas company Long Run Exploration, the Canadian government said September 22.
The announcement come after Canadian Prime Minister Justin Trudeau’s visit to China early September. The Sinoenergy deal was part of four agreements signed during the official visit by the Chinese Premier Li Keqiang to Canada from September 22-23.
Sinoenergy in February announced it would acquire 100% share of Long Run for C$780mn. The deal was closed on June 29. Long Run said the move will improve its capital structure.
Calgary based Long Run has a land position of over 600,000 net acres at Peace River, Redwater and Deep Basin in Western Canada. Peace River is company's highest producing asset with approximately 10,000 barrel of oil equivalent/d containing 4,000 barrel/d oil, 200 b/d NGLs and 35mnb ft3/d gas. Boyer is the primary natural gas base for Long Run.
Shardul Sharma