ExxonMobil announces sale of interests in Montney and Duvernay Canadian shale assets

Mike Edwards   

News ExxonMobil gas extraction Imperial purchase shale Whitecap Resources

Whitecap is seeking to expand operations in Montney shale with gas processing facilities like this one.

ExxonMobil of Irving, TX, has said that its Canadian affiliates, Imperial and ExxonMobil Canada, have entered into an agreement with Whitecap Resources Inc. for the sale of XTO Energy Canada, which is jointly owned by Imperial and ExxonMobil Canada.

The sale to Whitecap Resources, for a total cash consideration of about US$1.47 billion, is expected to close before the end of the third quarter, subject to regulatory approvals.

The ExxonMobil assets include 567,000 net acres in the Montney shale, 72,000 net acres in the Duvernay shale and additional acreage in other areas of Alberta. Net production from these assets is about 140 million cubic feet of natural gas per day and about 9,000 barrels per day of crude, condensate and natural gas liquids.

RBC Capital Markets acted as exclusive financial advisor to Imperial and ExxonMobil Canada in connection with the transaction.

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