Shell nets $1 bln through Canadian shale divestment

Shell nets $1 bln through Canadian shale divestment

Royal Dutch Shell, through its unit Shell Canada Energy, agreed to sell approximately 206,000 net acres of non-core oil and gas properties in Western Canada to Tourmaline Oil for approximately US$1 billion.

The consideration is comprised of $758 million in cash and Tourmaline shares valued at $279 million, the company said in a statement.

Shell expects to close the transaction 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 said.

Andy Brown, Shell upstream director, said, “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.”

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.

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