Dundee Energy Limited acquired the largest accumulation of producing oil and gas assets in Ontario in March 2010, furthering the company’s goal of creating long-term value for shareholders by acquiring and developing high-quality, long-life assets. The Ontario assets are managed by a wholly owned company, Dundee Energy Limited Partnership.
The majority of the company’s natural gas production originates from vast reservoirs under Lake Erie while its oil production is located in the southwestern Ontario counties of Kent and Essex. Lake Erie production is restricted to dry gas only and no oil is produced offshore. The sale of both oil and natural gas in Ontario attracts premium prices due to its proximity to the large Ontario market. The existing natural gas infrastructure and availability of under-explored geologic acreage provides the company with business opportunities to increase its oil and natural gas base while investigating opportunities for natural gas storage and various infrastructure projects.
Since 2010, Dundee has grown and added value through strategic acquisitions. In 2011 the company acquired Torque Energy Inc., a junior company that produced 84 barrels of oil per day and 0.3 million cubic feet per day of natural gas. Torque’s large underdeveloped land base provided Dundee with additional acreage for future exploration. In 2013 and 2014 the company increased its 65% working interest in offshore Lake Erie acreage to approximately 100% through the acquisition of working interests from two partners. The Lake Erie acquisitions added approximately 3.5 million cubic feet per day of natural gas to the company.
Dundee owns and operates a fleet of drill and service barges and supply boats to service the offshore wells and pipeline infrastructure. In addition, Dundee purchased an onshore rotary drilling rig in 2012 to provide a cost effective and flexible system for drilling future oil and natural gas prospects. The company generates revenue by providing drilling services to third parties.