CALGARY, Alberta, October 20, 2016 /PRNewswire/ --
Royal Dutch Shell plc, through
its affiliate Shell Canada Energy ("Shell") today announced it 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. Subject to regulatory approvals the transaction is
expected to close in the fourth quarter of 2016.
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 barrels
of oil equivalent per day (boe/d) of dry gas and liquids.
"Shell retains a significant shale position in Canada and we are actively working to mature
our attractive core asset base in the Montney and Duvernay," said Andy
Brown, Shell Upstream Director. "At 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."
Shell has a large shales portfolio focused on North America and Argentina, and is currently maturing this
portfolio as a growth option for beyond 2020 with material value
and substantial long-term potential.
NOTES TO EDITORS:
- In Canada, Shell retains
approximately 430,000 net acres in the Duvernay liquids play in Alberta and approximately 218,000 net acres in
the Montney gas play in
Northeast British Columbia.
- Shell also has material shale positions in the United States in the Permian and
Appalachia (Marcellus/Utica)
basins and Haynesville, and in the Vaca Muerta in Argentina.
- Production from Shell's Americas shales portfolio, excluding
the divested assets in this release, is approximately 250,000
boe/d.
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