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Royal Dutch Shell Divests Non-Core Shale Acreage in Western Canada for $1 Bln to Tourmaline Oil

Royal Dutch Shell (RDS.A, RDS.B) said late Thursday that, through its affiliate Shell Canada Energy, it has agreed to sell 206,000 net acres of non-core oil and gas properties in Western Canada to Tourmaline Oil Corp. for a total consideration of $1.04 billion (CAD1.37 billion).

The consideration is comprised of $758 million in cash and Tourmaline shares valued at $279 million. Subject to regulatory approvals the transaction is expected to close in Q4.

The acreage includes 61,000 net acres in the Gundy area of Northeast British Columbia, Canada, and 145,000 net acres in the Deep Basin area of West Central Alberta, Canada. The assets are a combination of developed and undeveloped lands, along with related infrastructure, producing 24,850 barrels of oil equivalent per day (boe/d) of dry gas and liquids.

ADRs were up 1.8% in the after hours session.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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