Keyera Announces Closing of West Central Alberta Asset Acquisition
CALGARY, May 1, 2014 /CNW/ - Keyera Corp. (TSX:KEY) ("Keyera") announced today
that it closed its previously announced acquisition of ownership interests in
certain gas processing assets in west central Alberta and associated oil and
gas reserves. The acquisition includes:
-- an 85% ownership interest in the West Pembina 6-28 gas plant,
along with the corresponding working interest in lands from
which gas is produced into the plant;
-- an additional 4.6% ownership interest in the Bigoray gas plant
(bringing its ownership in that plant to 100%), along with
certain associated reserves which produce into the plant; and
-- varying ownership interests in certain associated oil
batteries, compressors and gathering pipelines.
The acquired reserves are all from the Nisku formation.
The total purchase price was approximately $113 million. Some of the assets
are subject to third party claims, including certain reserves which are
subject to rights of first refusal (ROFRs). The reserves to which ROFRs
apply, together with the corresponding purchase price, are being held in
escrow pending the expiry or exercise of the ROFRs.
Keyera Corp. (TSX:KEY) operates one of the largest natural gas midstream
businesses in Canada. Its business consists of natural gas gathering and
processing as well as the processing, transportation, storage and marketing of
NGLs, the production of iso-octane and crude oil midstream activities.
Keyera's gas processing plants and associated facilities are strategically
located in the west central, foothills and deep basin natural gas production
areas of the Western Canada Sedimentary Basin. Its NGL and crude oil
infrastructure, including pipelines, terminals and processing and storage
facilities, as well as its iso-octane facility, are located in Edmonton and
Fort Saskatchewan, Alberta, a major North American NGL hub. Keyera markets
propane, butane, condensate and iso-octane to customers in Canada and the
This document contains forward-looking statements based on Keyera's current
expectations and assumptions relating to its business, the environment in
which it operates, its future operations, the performance of its assets,
including the newly acquired assets, the interpretation of the rights of first
refusal and asserted third party claims, as well as the terms and conditions
under which Keyera completed the acquisition. As these forward-looking
statements depend upon future events, actual outcomes may differ materially
depending on factors such as: the exercise of rights of first refusal; a
determination that there are rights of first refusal extending beyond the
reserves; the interpretation of the rights of first refusal under the
agreements governing the West Pembina 6-28 gas plant and certain reserves; a
determination that there are valid third party claims to any of the assets;
Keyera's ability and right to operate the acquired facilities; producer
interest in the services being offered; future operating results of the
assets; the ability of Keyera to execute each of their strategic initiatives
in connection with the facilities and reserves acquired; changes in production
decline rates; weather conditions; commodity supply/demand balances and
prices; activities of producers, competitors, customers, business partners and
others; overall economic conditions; access to capital and financing
alternatives; operational risks associated with gas plant operation and oil
and gas production; turnaround scheduling and costs; environmental
liabilities; and potential delays or changes in producer development plans in
the area; the legislative, regulatory and tax environment; and other known or
unknown factors. There can be no assurance that the results or developments
anticipated by Keyera will be realized or that it will have the expected
consequences for or effects on Keyera.
For additional information on these and other factors, see Keyera's public
filings on www.sedar.com. Unless otherwise required by applicable laws, Keyera
does not intend to publicly update or revise forward-looking statements,
whether as a result of new information, future events or otherwise.
SOURCE Keyera Corp.
about Keyera, please visit our website atwww.keyera.com or contact:
Keyera Corp. John Cobb, Vice-President, Investor Relations, or Julie Puddell,
Manager, Investor Relations Email:email@example.com; Telephone: 403.205.7670 /
Toll Free: 888.699.4853
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CO: Keyera Corp.
NI: OIL MNA
-0- May/01/2014 17:48 GMT
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