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Exxon acquires Canadian shale acreage

Oct. 18, 2012 at 9:18 AM   |   Comments

CALGARY, Alberta, Oct. 18 (UPI) -- Acquisition of shale acreage in western Canada is a significant move in North America for Exxon Mobil, an executive said after taking on a Canadian company.

Exxon Mobil Canada announced it acquired Calgary-based Celtic Exploration Ltd. for around $3 billion. Exxon, through the deal, takes on nearly 650,000 net acres of shale play in British Columbia and neighboring Alberta provinces.

"This acquisition will add significant liquids-rich resources to our existing North American unconventional portfolio," said Andrew Barry, president of Exxon Mobil Canada, in a statement.

The U.S.-based supermajor said current combined production was around 72 million cubic feet per day of natural gas and around 4,000 barrels per day of crude oil. Centrica put the resource estimated there at a combined 129 million barrels of oil equivalent.

The deal follows similar moves by Chinese and Malaysian energy companies eying Canadian natural resources.

Celtic, in a statement, said its board of directors unanimously approved of the proposed transaction.

"The arrangement is in the best interests of Celtic and is fair to Celtic's security holders," the company said.

© 2012 United Press International, Inc. All Rights Reserved. Any reproduction, republication, redistribution and/or modification of any UPI content is expressly prohibited without UPI's prior written consent.
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