Home Energy assets Imperial Oil of Canada to market XTO Energy interests

Imperial Oil of Canada to market XTO Energy interests

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Jan. 12 (Reuters) – Imperial Oil Ltd (IMO.TO) on Wednesday announced its intention to market its stakes in XTO Energy Canada jointly with Exxon Mobil Canada, as part of the company’s ongoing assessment of its portfolio.

Imperial and Exxon Mobil Canada each own 50% of XTO Energy Canada, with assets that include 568,000 net acres in the Montney Shale, 85,000 net acres in the Duvernay Shale and additional acreage in other areas of Alberta.

Calgary Imperial, majority owned by Exxon Mobil (XOM.N), said net production from these assets is about 140 million cubic feet of natural gas per day and about 9,000 barrels of crude, of condensate and natural gas liquids per day. .

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Imperial has said its intention to sell its XTO stakes is in line with its strategy to focus upstream resources on core oil sands assets, but no final decision has been made.

Le Montney in Canada, which straddles Alberta and British Columbia, saw a wave of consolidation as businesses collapsed when oil prices collapsed amid the COVID-19 pandemic.

Imperial Oil and Exxon Mobil Canada have retained RBC Capital Markets as their exclusive financial advisor for this process.

Exxon also on Tuesday launched the sale of shale gas properties spanning 27,000 acres in the Appalachian Basin of Ohio in a pending divestiture of US assets. Read more

The oil major in 2020 took nearly $ 20 billion in depreciation on properties, mostly purchased with subsidiary XTO Energy a decade earlier. It pulled gas assets in the Appalachians, Rocky Mountains, Oklahoma, Texas and elsewhere from its development plan after the depreciation.

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Report by Arunima Kumar in Bangalore; Editing by Shailesh Kuber

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