THE HAGUE (dpa-AFX) - Anglo-Dutch oil giant Royal Dutch Shell (RDS-B, RDSB.L, RDSA.L, RDS-A), through its affiliate Shell Canada Energy, 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 about $1.037 billion or C$1.369 billion. 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.
Including the effect of the Acquisition and associated development, Tourmaline Oil expects 2017 production of approximately 250,000-260,000 boepd, and 2018 production levels of 310,000-320,000 boepd.
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