Imperial Oil to participate in ExxonMobil Canada Ltd.'s acquisition of Celtic
-- Imperial Oil to participate as a 50% owner
-- Agreement includes 649,000 net acres in the Montney and
Duvernay shales in Alberta
CALGARY, Nov. 28, 2012 /CNW/ - Imperial Oil today announced it will
participate as a 50-percent owner with ExxonMobil Canada Ltd. in Celtic
Exploration Ltd. ("Celtic"). The acquisition of 100 percent of Celtic by
ExxonMobil Canada announced on October 17, 2012 is conditional upon approval
by Celtic Exploration's shareholders and Canadian regulatory authorities.
Imperial Oil's participation will occur immediately after the acquisition
closes, by means of a sale of a 50-percent interest in Celtic from ExxonMobil
Canada to Imperial Oil. This investment represents a $1.55 billion
commitment by Imperial Oil.
ExxonMobil Canada and Imperial Oil will acquire 545,000 net acres in the
liquids-rich Montney shale, 104,000 net acres in the Duvernay shale and
additional acreage in other areas of Alberta. Current production of the
acreage to be acquired is 72 million cubic feet per day of natural gas and
4,000 barrels per day of condensate and natural gas liquids. The assets were
estimated by Calgary-based Celtic Exploration at December 31, 2011 to include
an estimated 128 million oil equivalent barrels of proved plus probable
reserves, of which 24 percent are condensate and natural gas liquids and 76
percent natural gas.
"This acquisition will allow Imperial to diversify its strong resource base in
Canada with an attractive liquids-rich natural gas play" said Bruce March,
Chairman and Chief Executive Officer of Imperial Oil Limited. "We continue to
leverage our strong balance sheet and solid financial position to grow the
company through strategic resource capture in key opportunity areas. This new
venture represents a significant opportunity to leverage ExxonMobil's
expertise in shale gas development and add value for Imperial shareholders.
Imperial Oil is one of Canada's largest corporations and leading member of the
country's petroleum industry. The company is a major producer of crude oil and
natural gas, Canada largest petroleum refiner, a key petrochemical producer
and a leading marketer with coast-to-coast supply and retail service station
Media relations Pius Rolheiser (403) 237-2710
Investor relations John Charlton (403) 237-4537
SOURCE: Imperial Oil Limited
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CO: Imperial Oil Limited
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-0- Nov/28/2012 12:30 GMT
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