ExxonMobil Canada announced today an agreement to acquire Celtic Exploration for $24.50 per share. This acquisition will add significant acreage to ExxonMobil’s Canadian holdings including 545,000 acres in Monttney shale, 104,000 acres in Duvernay shale and additional acreage in the Alberta region.
“This acquisition will add significant liquids-rich resources to our existing North American unconventional portfolio,” said Andrew Barry, president of ExxonMobil Canada. “Our financial and technical strength will enable us to maximize resource value by leveraging the experience of ExxonMobil subsidiary XTO Energy, a leading U.S. oil and natural gas producer which has expertise in developing tight gas, shale oil and gas and coal bed methane.”
Celtic Exploration’s current production produced from its acreage totals 72 million cubic feet per day of natural gas and 4,000 barrels daily of crude, condensate and natural gas liquids. Assets estimated in December of 2011 by Celtic Exploration include an approximate 128 million oil equivalent barrels of proved plus probably reserves in which 24 per cent are crude, condensate and natural gas liquids while 76 per cent are natural gas.
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ExxonMobil specified that 60 employees of Celtic Exploration, through the acquisition, will be given opportunities to transition to ExxonMobil employment.
The acquisition agreement is still subjects to Celtic Exploration shareholder approval as well as the Canadian regulatory authorities.