Murphy Oil acquires Shell’s assets in Canada

US-based Murphy Oil, a subsidiary of Murphy Oil Corporation, has signed a deal with Shell Canada Energy to acquire Shell’s assets in the Seal Lake area of Alberta, Canada.

Murphy Oil also gains the additional interests in Shell’s lands for an undisclosed amount, as part of the agreement.

Under the agreement, Murphy will take over about 148,531 net acres of land along with associated plant and equipment with production capacity of 2,200 barrels of oil equivalent per day.

The company will also be in possession of about 14.0 million barrels of oil equivalent of proved and probable reserves.

Upon the completion of the transaction, expected in the fourth quarter of 2012, Murphy’s acreage position will rise to over 331,000 net acres in the area with total production capacity of over 9,000 barrels of oil equivalent per day.

Murphy, as the operator of this area, could avail the opportunity to advance its growth plans for conventional as well as for enhanced oil recovery opportunities.

Company operates its oil and natural gas business in the US, Canada, the UK, Malaysia and The Republic of Congo, and conducts exploration activities worldwide.

Murphy has high-volume, low-cost retail gasoline stations and terminals in the US that will supply fuel to the company’s retail network and wholesale customers.