Canada markets open in 8 hours 35 minutes
  • S&P/TSX

    18,320.67
    -100.93 (-0.55%)
     
  • S&P 500

    3,819.72
    -50.57 (-1.31%)
     
  • DOW

    31,270.09
    -121.43 (-0.39%)
     
  • CAD/USD

    0.7908
    +0.0004 (+0.06%)
     
  • CRUDE OIL

    61.65
    +0.37 (+0.60%)
     
  • BTC-CAD

    62,759.37
    +86.53 (+0.14%)
     
  • CMC Crypto 200

    994.85
    +7.64 (+0.77%)
     
  • GOLD FUTURES

    1,715.50
    -0.30 (-0.02%)
     
  • RUSSELL 2000

    2,207.79
    -23.72 (-1.06%)
     
  • 10-Yr Bond

    1.4700
    0.0000 (0.00%)
     
  • NASDAQ futures

    12,589.50
    -92.25 (-0.73%)
     
  • VOLATILITY

    26.67
    +2.57 (+10.66%)
     
  • FTSE

    6,675.47
    +61.72 (+0.93%)
     
  • NIKKEI 225

    28,945.46
    -613.64 (-2.08%)
     
  • CAD/EUR

    0.6555
    +0.0008 (+0.12%)
     

U.S. oil major ConocoPhillips buys Canadian land from Kelt in $375 million deal

·1 min read
FILE PHOTO: The logo for ConocoPhillips is displayed on a screen on the floor at the NYSE in New York

WINNIPEG, Manitoba (Reuters) - U.S. oil major ConocoPhillips said on Wednesday that it agreed to buy land from Kelt Exploration Ltd in Canada's Montney shale oil play, in a $375 million deal.

The 140,000 acres in British Columbia are directly adjacent to ConocoPhillips' own Montney lands, the company said. The oil resource amounts to 1 billion barrels of oil equivalent.

The deal allows ConocoPhillips to extend its existing position at an attractive cost, Chief Operating Officer Matt Fox said.

It comes three years after Houston-based ConocoPhillips sold much of its Canadian assets to Cenovus Energy, part of a multi-year withdrawal of foreign producers from Canada. In April, ConocoPhillips reduced production at its Surmont Canadian site by 100,000 barrels of oil per day.

Kelt said in a statement that the sale would strengthen its finances during an uncertain economic time, while leaving it a large inventory of future drilling sites.

The deal is expected to close Aug. 21.

(Reporting by Rod Nickel in Winnipeg, Manitoba; Editing by Leslie Adler)