Canada: Business Deal Conoco Phillips Successfully Completes Montney Acquisition
The previously announced Montney acquisition by Conoco Phillips has now been completed by the company. With this, the firm now has 295,000 net acres in the Montney with 100 per cent working interest.
Houston/USA – Conoco Phillips has recently announced that it has completed the previously announced transaction to acquire additional Montney acreage in Canada from Kelt Exploration. Cash consideration for the transaction was approximately 390 million dollars at current foreign exchange rates and is subject to customary post-closing adjustments. The company also assumed approximately 30 million dollars in financing obligations for associated partially owned infrastructure. The company now has 295,000 net acres in the Montney with 100 per cent working interest.
“The liquids-rich Montney represents an attractive low cost of supply resource within our portfolio,” said Matt Fox, executive vice president and chief operating officer. “By nearly doubling our net acreage position, this acquisition provides us with the scale to optimise development in an area where we are already seeing encouraging early results.”
Production associated with the acquired asset was approximately 15 thousand barrels of oil equivalent per day (MBOED) in the second quarter of 2020. Given ongoing variability and uncertainty in the outlook for production curtailments, the company will continue to suspend forward-looking guidance and sensitivities.