Production associated with the acquired asset was nearly 15Mboed in the second quarter of 2020
ConocoPhillips, an exploration and production company, has completed the acquisition of the Montney acreage from a Canadian oil and gas company, Kelt Exploration for about $390m.
The transaction follows an agreement signed by the company to acquire the liquids-rich Montney acreage last month.
The acquisition includes Inga/Fireweed/Stoddart division assets located in British Columbia.
As part of the transaction, ConocoPhillips has assumed financing obligations of nearly $30m for the acquisition of the associated partially owned infrastructure.
ConocoPhillips executive vice president and chief operating officer Matt Fox said: “The liquids-rich Montney represents an attractive low cost of supply resource within our portfolio.
“By nearly doubling our net acreage position, this acquisition provides us with the scale to optimize development in an area where we are already seeing encouraging early results.”
ConocoPhillips currently holds 295,000 net acres in the Montney acreage
With completion of the acquisition, ConocoPhillips currently holds 295,000 net acres in the Montney acreage with 100% working interest.
In the second quarter of 2020, production associated with the acquired asset was nearly 15 thousand barrels of oil equivalent per day (Mboed).
Recently, the US Bureau of Land Management (BLM), an agency within the United States Department of the Interior has approved ConocoPhillips’ plans to drill in the National Petroleum Reserve in Alaska.
The company has also secured a final environmental impact statement (EIS) for the Willow Master Development Plan (MDP) project.
The Willow project is expected to produce more than 160,000 barrels of oil per day, with a processing capacity of 200,000 barrels of oil per day for over 30 years.