Rich Kruger Chairman, president and chief executive officer of Imperial Oil

Canada’s No.3 oil and gas company, Imperial Oil, said Monday that Whitecap Resources Inc has agreed to buy some of its oil and gas properties in Western Canada for $771 million.

Imperial Oil is 69.6 percent owned by Exxon Mobil.

The company said the properties in British Columbia and Alberta had produced about 15,000 boepd in 2013.

Imperial spokesperson  Leanne Dohy said “It’s our long standing practice to continually review assets for their contribution to meeting strategic, operational and financial objectives.”

For Whitecap, the acquisition is one of several announcements that will see the mid-sized Western Canadian oil and gas producer double its production and increase its dividend by 10 percent.

In addition to the purchase of Imperial’s properties, Whitecap has also agreed to acquire an undisclosed private oil and gas producer with assets in north central Alberta for C$107 million.

To finance its acquisition, Whitecap arranged to sell 44.6 million subscription receipts priced at $10.12 each to a group of underwriters led by National Bank Financial and TD Securities Inc.

Gross proceeds of the financing will be around $450 million.

The transactions are expected to close in May.


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