United States oil major ConocoPhillips recently announced that it had agreed to purchase land from Kelt Exploration Ltd in Canada’s Montney shale oil play, in a $375 million transaction.
The company said the 140,000 acres located in British Columbia are adjacent to ConocoPhillips’ Montney lands. The oil resource is estimated to be 1 billion barrels of oil equivalent.
While talking about the deal, the Chief Operating Officer of ConocoPhillips, Matt Fox said the deal permits ConocoPhillips to expand its existing position at an attractive cost.
The deal came three years after ConocoPhillips sold many of its Canadian assets to Cenovus Energy as part of a multi-year withdrawal of foreign manufacturers from Canada. ConocoPhillips lowered production at its Surmont Canadian site by 100,000 barrels of oil per day in April.
Kelt disclosed in a statement that the sale would empower its finances during the current economic uncertainty and offer it a large inventory of future drilling sites.
The deal is expected to be finalised on August 21.
