Shell divests shale acreage in Western Canada for $1 billion
CALGARY, Alberta -- Royal Dutch Shell, through its affiliate Shell Canada Energy, has agreed to sell approximately 206,000 net acres of non-core oil and gas properties in Western Canada to Tourmaline Oil Corp. for a total consideration of approximately $1,037 million (C$1,369 million). The consideration is comprised of $758 million in cash and Tourmaline shares valued at $279 million.
The acreage includes 61,000 net acres in the Gundy area of Northeast British Columbia, Canada, and 145,000 net acres in the Deep Basin area of West Central Alberta, Canada. The assets are a combination of developed and undeveloped lands, along with related infrastructure, producing 24,850 boed of dry gas and liquids.
鈥淪hell retains a significant shale position in Canada, and we are actively working to mature our attractive core asset base in the Montney and Duvernay,鈥 said Andy Brown, Shell Upstream Director. 鈥淎t the same time we are strengthening our shales business and creating shareholder value by selling assets that do not fit our near-term development plans.鈥
Shell has a large shales portfolio focused on North America and Argentina, and is maturing this portfolio as a growth option for beyond 2020 with material value and substantial long-term potential.
The transaction is expected to close in the fourth quarter.