ExxonMobil to Acquire Celtic's Western Canada Shale Assets

Exxon Mobil Corp. and Celtic Exploration Ltd. have announced that Exxon will acquire Celtic’s oil and gas assets in Western Canada for CDN$3.1 billion (US$3.2 billion).

Canadian affiliates of ExxonMobil, including Exxon Mobil Canada Ltd. and Celtic have entered into an agreement for the purchase by a subsidiary of ExxonMobil Canada of all of Celtic’s outstanding common shares for CDN$24.50 per share, a 35% premium over Celtic’s recent share price.  Additionally, Celtic shareholders will receive a half share of a new company, 1705972 Alberta Ltd. (Spinco), for each Celtic common share.

Celtic's assets include large acreage positions in Canadian shale plays including 545,000 net acres in the Montney shale play and 104,000 net acres in the Duvernay shale plays in Alberta. Other acreage in the deal is in the Inga area of British Columbia, the Grande Cache area in Alberta, and interests in oil and gas properties in Karr, Alta.

The price paid by Exxon highlights opportunities resulting from low natural gas prices in North America.