ConocoPhillips increases Canadian Montney stake
April 4, 2018
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Houston-based ConocoPhillips Co. says it is selling oil and gas assets in the United States while increasing its stake in Western Canada.
The company that sold most of its Canadian oil sands and conventional drilling operations to Cenovus Energy Inc. last year says it recently closed or signed deals to sell $320 million in non-core assets in the U.S., including several packages in the Permian Basin of Texas.
According to Canadian Press, the company spent $154 million to add 14,000 hectares to its existing 56,000 hectares of drilling rights prospective for the Montney.
It says it also bought almost 100,000 hectares in the U.S., most in the Austin Chalk play in central Louisiana, without giving a price.
Calgary-based Cenovus spent $17.7 billion a year ago to buy ConocoPhillips’ half-share in its steam-driven oil sands projects in northern Alberta as well as conventional natural gas properties in northeastern B.C. and northwestern Alberta.
After the deal closed, ConocoPhillips said it would lay off 300 staff in Calgary.
Matt Fox, executive vice-president of strategy for the Houston company, says lands acquired in Louisiana and Canada will add to its inventory of low-cost growth opportunities without requiring immediate investment.