ExxonMobil acquires Celtic Exploration

ExxonMobil Canada today announced an agreement with Celtic Exploration Ltd. under which an ExxonMobil Canada affiliate will acquire Celtic.

Under the terms of the agreement, ExxonMobil Canada will acquire 545,000 net acres in the liquids-rich Montney shale, 104,000 net acres in the Duvernay shale and additional acreage in other areas of Alberta.

Current production of the acreage to be acquired is 72 million ft3/d of natural gas and 4000 bpd of crude, condensate and natural gas liquids. The assets were estimated by Calgary-based Celtic Exploration at December 31, 2011 to include an estimated 128 million boe of proved plus probable reserves, of which 24% are crude, condensate and natural gas liquids and 76% natural gas.

Shareholders of Celtic Exploration will receive C$24.50 per share and half a share of a newly established company, which will hold assets not included in the agreement with ExxonMobil Canada. These assets include acreage in the Inga area in British Columbia, the Grande Cache area in Alberta and interests in oil and gas properties located in Karr, Alberta.

The agreement is subject to approval by Celtic Exploration’s shareholders and Canadian regulatory authorities.

“This acquisition will add significant liquids-rich resources to our existing North American unconventional portfolio,” said Andrew Barry, president of ExxonMobil Canada. “Our financial and technical strength will enable us to maximize resource value by leveraging the experience of ExxonMobil subsidiary XTO Energy, a leading U.S. oil and natural gas producer which has expertise in developing tight gas, shale oil and gas and coal bed methane.”

Adapted from press release by Peter Farrell.

Read the article online at: https://www.oilfieldtechnology.com/drilling-and-production/18102012/exxonmobil-acquires-celtic-exploration-and-shale-acreage493/