Shell sells Canada’s Duvernay oil assets for $707mn

Shell has sold its light oil assets in Canada's Duvernay formation to Calgary-based Crescent Point Energy for $707mn.

February 18, 2021 Stu Turley Crude Oil News, Finance, International News, M & A
Crescent Point Energy Corp - Energy News Beat

The sale includes about 450,000 net acres in the Fox Creek and Rocky Mountain House areas in Alberta, along with related infrastructure, which is currently producing 30,000 b/d oil equivalent (boe/d) from more than 270 wells.

“While we believe these assets hold value, the divestment allows us to focus on our core Upstream positions like the Permian Basin, with integrated value chains, thereby building a resilient, lower-risk and less complex portfolio,” said Wael Sawan, Shell’s upstream director.

Shell will continue to have about 500 producing wells in the Groundbirch acreage in British Columbia, with about 75pc of the wells in a joint venture. It will also have about 40 wells in the Gold Creek assets in the Montney area.

The deal includes $550mn in cash and 50mn in Crescent Point Energy common stock. The transaction is expected to close in April.

By Tom Fowler – Argus

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Stuart Turley is President and CEO of Sandstone Group, a top energy data, and finance consultancy working with companies all throughout the energy value chain. Sandstone helps both small and large-cap energy companies to develop customized applications and manage data workflows/integration throughout the entire business. With experience implementing enterprise networks, supercomputers, and cellular tower solutions, Sandstone has become a trusted source and advisor.   He is also the Executive Publisher of www.energynewsbeat.com, the best source for 24/7 energy news coverage, and is the Co-Host of the energy news video and Podcast Energy News Beat. Energy should be used to elevate humanity out of poverty. Let's use all forms of energy with the least impact on the environment while being sustainable without printing money. Stu is also a co-host on the 3 Podcasters Walk into A Bar podcast with David Blackmon, and Rey Trevino. Stuart is guided by over 30 years of business management experience, having successfully built and help sell multiple small and medium businesses while consulting for numerous Fortune 500 companies. He holds a B.A in Business Administration from Oklahoma State and an MBA from Oklahoma City University.

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