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ConocoPhillips to Acquire Liquids-Rich Montney Acreage from Kelt Exploration

Gasoil News - Published on Mon, 27 Jul 2020

Image Source: ConocoPhillips Montney Acreage Kelt Exploration
ConocoPhillips announced that it has signed a definitive agreement to acquire additional Montney acreage in Canada from Kelt Exploration Ltd. for cash consideration of approximately USD 375 million before customary adjustments, plus the assumption of approximately USD 30 million in financing obligations for associated partially owned infrastructure. This acquisition is 140,000 net acres in the liquids-rich Inga-Fireweed asset Montney zone, which is directly adjacent to the company’s existing Montney position. The transaction increases the company’s Montney acreage position to 295,000 net acres with 100 percent working interest.

Key attributes for the transaction include:

Adds over 1 billion barrels of oil equivalent (BBOE) of high-value resource with an all-in cost of supply of mid-$30s (WTI basis).
The acquisition cost is approximately $2-$4 per barrel on a WTI cost of supply basis, depending on pace of development.
Increases exposure to the core of the liquids-rich Montney acreage.
Production associated with the acquired asset is approximately 15 thousand barrels of oil equivalent per day (MBOED).
Adds over 1,000 high-quality well locations.
Increases scale, which will drive supply chain and offtake improvements.
Transaction economics do not assume any incremental capital investments are made in the Montney in the next several years.
The transaction is subject to regulatory approval and is expected to close in the third quarter of 2020. The effective date for the transaction is July 1, 2020.

Source :

Posted By : Yogender Pancholi on Mon, 27 Jul 2020
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