ConocoPhillips Extends Montney Shale Position with $375 Million Acquisition

ConocoPhillips Co. on July 22 tacked on additional acreage to its position in Canada’s Montney Shale, giving the Houston-based independent “significant running room at a very attractive all-in cost,” COO Matt Fox said.

In a company release, ConocoPhillips said it agreed to pay Kelt Exploration Ltd. roughly $375 million in cash for 140,000 net acres located in the liquids-rich Inga-Fireweed asset Montney zone. ConocoPhillips will also assume about $30 million in financing obligations for associated partially owned infrastructure.

Production associated with the acquired asset, which will add over 1,000 well locations, is approximately 15,000 boe/d. ConocoPhillips estimates the acquisition adds over 1 billion boe of resource with an all-in cost of supply of mid-$30s (WTI basis), the company release said.