Oil magnate ConocoPhillips buys Canadian land for $375m deal

oil

U.S. oil major ConocoPhillips established that it concords to purchase land from Kelt Exploration Ltd in Canada’s Montney shale oil play, in a $375 million deal.

The 140,000 acres in British Columbia are directly adjacent to ConocoPhillips’ own Montney lands, the company said. The oil resource amounts to 1 billion barrels of oil equivalent.

The deal permits ConocoPhillips to extend its existing position at an attractive cost, Chief Operating Officer Matt Fox said.

It comes three years after Houston-based ConocoPhillips sold much of its Canadian assets to Cenovus Energy, part of a multi-year withdrawal of foreign producers from Canada. In April, ConocoPhillips reduced production at its Surmont Canadian site by 100,000 barrels of oil per day.

Kelt disclosed in a statement that the sale would strengthen its finances during an uncertain economic time, while leaving it a large inventory of future drilling sites.

The deal is expected to close Aug. 21.

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