ExxonMobil Canada has agreed to acquire Celtic Exploration Ltd., Calgary, in a $3.1 billion (Can.) transaction involving large acreage positions in Canadian shale plays.
ExxonMobil will pay $24.50 for each Celtic share, a 35% premium over Celtic’s recent share price. Celtic shareholders also will receive half a share in a new company to be led by current Celtic managers for each Celtic share.
Celtic assets include 545,000 net acres in the Montney shale play and 104,000 net acres in the Duvernay shale plays in Alberta. Other acreage in the deal is in the Inga area of British Columbia, the Grande Cache area in Alberta, and interests in oil and gas properties in Karr, Alta.
The interests to be acquired produce 72 MMcfd of natural gas and 4,000 b/d of crude, condensate, and natural gas liquids. Proved plus probable reserves are estimated at 128 million boe, 24% crude, condensate, and NGL and 76% natural gas.
Imperial Oil Ltd., an ExxonMobil Canadian affiliate, is not a party to the transaction but can participate for up to equal participation under an agreement with ExxonMobil Canada.
The new company will named 1705972 Alberta Ltd. (Spinco). It will have interests in a gas property at Grand Cache, a liquids-rich gas property at Inga, and an oil prospect at Karr. Production of the assets is about 3,300 boe/d, 90% gas and 10% oil.