HOUSTON (dpa-AFX) - ConocoPhillips (COP) Wednesday said it has agreed to acquire additional Montney acreage in Canada from Kelt Exploration Ltd. for about $375 million in cash, plus the assumption of around $30 million in financing obligations for associated partially owned infrastructure.
The acquisition is 140,000 net acres in the liquids-rich Inga-Fireweed asset Montney zone, which is directly adjacent to the company's existing Montney position. The transaction increases the company's Montney acreage position to 295,000 net acres with 100 percent working interest.
'We have tracked and analyzed this adjacent acreage position for a long time,' said Matt Fox, executive vice president and chief operating officer. 'It represents a high-value extension of our existing Montney position, and we're pleased to capture this opportunity at an attractive cost of supply that meets our criteria for resource additions. The transaction provides operating scale and flexibility to create significant value for shareholders by applying our drilling and completion techniques on this asset and optimizing our future overall Montney development plans.'
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