Journey Energy Acquires Private Company for Natural Gas Processing

Journey Energy Inc, a Canadian exploration and production company focused on oil-weighted operations in Alberta, has announced the acquisition of a private company, PrivateCo, for a total consideration of $8 million, subject to customary closing adjustments. The primary asset of PrivateCo is a 0.98% working interest in the Keyera Rimbey natural gas processing facility and associated infrastructure. This acquisition is expected to deliver a net reduction in operating expenses for processing Journey's working interest gas production from the Duvernay Joint Venture.

According to Journey Energy, the acquisition is anticipated to pay out within two to three years, based on forecast revenues and operating cost reductions. The company projects that the Asset will generate third-party processing revenue of approximately $0.7 million annually. Journey Energy's strategy includes growing its production base through drilling on existing core lands, implementing secondary and tertiary flood projects, and executing accretive acquisitions. The company is also focusing on the development of its Duvernay light oil resource play and plans to grow its power generation business through projects at Gilby and Mazeppa.

In addition to the acquisition, Journey Energy has posted an updated corporate presentation on its website, reflecting the removal of recently completed divestments and providing preliminary initial guidance for 2027. The company is scheduled to present at the Peters & Co. Limited 30th Annual Energy Conference in Toronto on September 16 at 11:40 AM Eastern Time.

The forward-looking statements in the press release highlight the anticipated benefits of the acquisition, including expected reductions in operating expenses and processing costs. Journey Energy emphasizes that the forward-looking information is based on certain key expectations and assumptions made by management, including prevailing commodity prices and differentials, exchange rates, interest rates, and the state of the economy and the exploration and production business.

The company cautions that the forward-looking information involves inherent risks and uncertainties, and actual results may differ materially from those expressed in the forward-looking statements. Journey Energy advises readers to refer to its Annual Information Form for a detailed discussion of the risks and uncertainties associated with the forward-looking information.