Imperial Oil is divesting its oil and gas assets in Boundary Lake, Cynthia / West Pembina and Rocky Mountain House in British Columbia and Alberta, Canada, to Whitecap Resources for approximately C$855m.
The assets being sold produced around 15,000 barrels of oil equivalent a day in 2013 on a net-before-royalty basis.
Discover B2B Marketing That Performs
Combine business intelligence and editorial excellence to reach engaged professionals across 36 leading media platforms.
Imperial Oil said that the assets involved in the transaction produce an even split between oil and gas.
Whitecap said that the acquisition will be funded with a concurrent $500m bought deal equity financing and debt. It is anticipated to be completed in May.
The acquisition includes material facilities infrastructure, providing for low-cost future development and a near-term reduction in Whitecap’s overall operating costs.
Upon completion, Whitecap’s annual production is expected to increase to about 33,500 barrels a day of oil and gas. The company noted that the acquired assets have significant original oil in place with low recovery factors and limited development in recent years. It has identified considerable upside potential in the assets with the current oil price environment and advances in technology.
US Tariffs are shifting - will you react or anticipate?
Don’t let policy changes catch you off guard. Stay proactive with real-time data and expert analysis.
By GlobalDataApart from the Imperial Oil deal, Whitecap has also entered into an unrelated purchase and sale agreement to acquire a private oil and gas company with assets in north central Alberta for $107m. The acquisition is expected to be completed by 30 April.
