Royal Dutch Shell said Friday that it sold non-core oil and gas properties in Western Canada to Tourmaline Oil Corp. for just over $1 billion.
Shell, through its affiliate Shell Canada Energy, agreed to sell about 206,000 net acres of non-core oil and gas properties to Tourmaline for a total consideration of $1.037 billion (C$1.369 billion).
The consideration is comprised of $758 million in cash and Tourmaline shares valued at $279 million.
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.
Shell said the assets include a combination of developed and undeveloped lands, along with related infrastructure, producing 24,850 barrels of oil equivalent per day of dry gas and liquids.
“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. At the same time we are strengthening our shales business and creating shareholder value by selling assets that do not fit our near-term development plans,” Shell Upstream Director Andy Brown said.
The transaction is expected to close in the fourth quarter of 2016, subject to regulatory approvals.
Shell said on Friday that it is “currently maturing” its North America and Argentina shale portfolio “as a growth option for beyond 2020 with material value and substantial long-term potential.”
