Page 4 - NorthAmOil Week 26 2022

NorthAmOil COMMENTARY NorthAmOil

ExxonMobil, Imperial strike deal to

sell Canadian shale assets

ExxonMobil and Imperial Oil have agreed to sell their Montney and Duvernay assets in

Canada to Whitecap Resources for $1.5bn

WESTERN EXXONMOBIL and its Canadian subsidiary, This week, ExxonMobil echoed an intention
CANADA Imperial Oil, have found a buyer for their jointly to focus on its own key upstream assets. In the
owned Canadian shale business, which they super-major’s case, those include its Permian
WHAT: have been seeking to sell since January. The two Basin shale operations, as well as its offshore
ExxonMobil and Imperial companies agreed this week to sell XTO Energy operations in Guyana.
are selling their Canadian Canada to Whitecap Resources for CAD1.9bn XTO Energy Canada owns 567,000 net acres
shale assets to Whitecap ($1.47bn). (2,295 square km) in the Montney shale and
for $1.5bn. The transaction represents a markup on an 72,000 net acres (291 square km) in the Duver-
earlier estimate from industry insiders that the nay play, both in Northwest, as well as some
WHY: assets involved could be valued at up to $1bn. It additional acreage in other areas of Alberta. In
The companies is the largest Canadian acquisition of the year, total, the properties amount to 672,000 gross
announced that they were according to Sayer Energy Advisors, as well acres (2,719 square km).
trying to sell the assets at as being Whitecap’s largest ever deal and its The venture’s net production from these
the start of the year. fifth major acquisition since the coronavirus assets totals around 140mn cubic feet (4.0mn
(COVID-19) pandemic began. cubic metres) per day of gas and about 9,000
WHAT NEXT: barrels per day (bpd) of crude, condensate
The transaction price Shale sale and natural gas liquids (NGLs). This equates
represents a markup on Imperial said in January that it would be mar- to 32,000 barrels of oil equivalent (boepd) in
an earlier valuation, and keting XTO Energy Canada together with Exx- total, with condensate and NGLs accounting
is also Whitecap’s largest onMobil. The company described the decision for 30%.
ever deal. at the time as part of its ongoing evaluation of According to Whitecap, the acquisition
its unconventional portfolio, as well as being includes over 20 years’ worth of Tier 1 drilling
consistent with its strategy of focusing on its oil locations, as well as an operated shallow cut gas
sands operations. facility in the Duvernay that processes volumes

P4 www. NEWSBASE .com Week 26 30•June•2022