Shell sells shale assets for $1bn in Canada

Royal Dutch Shell has announced it is selling non-core shale oil and gas properties in Canada worth $1.03 million (£0.84m). Canadian firm Tourmaline Oil Corporation will buy around 206,000 net […]

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By Jacqueline Echevarria

Royal Dutch Shell has announced it is selling non-core shale oil and gas properties in Canada worth $1.03 million (£0.84m).

Canadian firm Tourmaline Oil Corporation will buy around 206,000 net acres.

It includes 61,000 net acres in the Gundy area of Northeast British Columbia and 145,000 net acres in the Deep Basin area of West Central Alberta.

The assets are a combination of developed and undeveloped lands, along with related infrastructure, producing more than 24,800 barrels of oil equivalent per day (boe/d) of dry gas and liquids.

The transaction is expected to close in the fourth quarter of 2016 and Shell claims its production from its shales portfolio, excluding these divested assets, is approximately 250,000 boe/d.

Andy Brown, Shell Upstream Director said: “Shell retains a significant shale position in Canada and we are actively working to mature our attractive core asset base in the Montney and Duvernay. At the same time we are strengthening our shales business and creating shareholder value by selling assets that do not fit our near-term development plans.”

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