Canadian operator ARC Resources completed a CA$1.6 billion (US$1.18 billion) deal from Strathcona Resources for oil and gas assets in the Montney Basin, the company announced July 2.

The deal, centered on the Kakwa region in Alberta, follows ARC’s strategy of strengthening its Montney position. In September 2024, the company sold its non-core assets out of the Montney Basin for US$59.2 million.

The company said the newly acquired assets are split at 50% oil and liquids production and 50% natural gas. ARC expects the new acreage will produce about 37,000 boe/d for the remainder of the year.

The assets expand ARC’s expected Kakwa production by 24% and increase the company’s inventory duration in the Montney from 12 years to 15 years, according to the announcement.

The deal also came with infrastructure, which ARC said it will take over two gas processing plants and condensate handling infrastructure.

ARC’s net debt following the closing will reach about CA$2.8 billion (US$2.06 billion). In June, the company closed a CA$1 billion (US$740 million) offering in senior unsecured notes to finance the deal.

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