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.