ConocoPhillips acquires liquids-rich Montney acreage from Kelt

US oil major ConocoPhillips has announced that it has completed the acquisition of land from oil and gas firm Kelt Exploration in Canada’s Montney shale oil play.

Last month, ConocoPhillips signed a definitive agreement to acquire land from Kelt Exploration.

The deal is valued at a cash consideration of around $390m and an additional $30m in financing obligations for the partially owned infrastructure.

With this deal, ConocoPhillips will now have 295,000 acres in the Montney zone, with a 100% working interest (WI) in the area.

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 optimise development in an area where we are already seeing encouraging early results.”

The oil major noted that the production associated with the acquired asset during the second quarter this year was about 15,000 barrels of oil equivalent per day (boepd).

ConocoPhillips stated: “Given ongoing variability and uncertainty in the outlook for production curtailments, the company will continue to suspend forward-looking guidance and sensitivities.”

In June, ConocoPhillips deployed Mendix low-code application development platform across its operations.

ConocoPhillips sold its subsidiaries that hold its Australia-West assets and operations to Santos for $1.265bn, in May this year.

ConocoPhillips is headquartered in Houston, Texas. It has operations across 16 countries, with $63bn worth of assets and approximately 9,700 employees.