Pieridae completes purchase of Shell properties

Gas to supply Train 1 at Goldboro LNG

October 23 2019

GOLDBORO – Pieridae Energy announced Oct. 17 that it has completed its purchase of all of Shell Canada Energy’s gas-producing facilities in the southern Alberta Foothills.

In addition to a $10 million deposit paid at signing of the deal, on closing Pieridae paid Shell $165 million in cash, which Pieridae funded through the issuance of term debt and equity. Pieridae satisfied the balance of the purchase price of $15 million by giving Shell of 15.2 million common shares of the company.

“We are very pleased to close this transformational acquisition as it secures the majority of the natural gas needed, once developed, to supply the first train at our Goldboro LNG facility for at least twenty years,” said Pieridae’s Chief Executive Officer, Alfred Sorensen. “We will now complete our negotiations with Kellogg Brown & Root Limited for a fixed price contract to construct the Goldboro LNG facility so that we can then proceed to complete the project financing and final equity raise and make a final investment decision.”

With the Shell acquisition, Pieridae now has multiple dry gas and liquids-rich gas reservoirs within the Foothills area. The company says it has engaged professionals, many of whom are transitioning from Shell, with strong experience managing the four major processing facilities and associated midstream assets. “Pieridae is well positioned to leverage the US$1.5 billion of the government-backed guarantees for conventional gas supply development which the German government approved in principle,” says the Pieridae media release. “This amount is in addition to the US$3.0 billion of government-backed guarantees for the construction of the Goldboro LNG facility which the German government has also approved in principle.”

Sorensen says there “are additional opportunities to develop our liquids-rich areas, process the sour gas, strip out the liquids, store the dry gas and then further develop our dry gas resources down the road.”

Moving forward, Pieridae says it is committed to working with the communities surrounding its newly acquired assets, including continuing to build trust with the Treaty 7 Nations through respectful engagement and collaboration.