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Imperial, ExxonMobil Canada selling Alberta assets to Whitecap for $1.9 billion

CALGARY — Imperial Oil Ltd. says it and ExxonMobil Canada have entered into an agreement to sell the Montney and Duvernay oil and gas-producing areas of central Alberta to Whitecap Resources Inc. for $1.9 billion.
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Imperial Oil logo at the company's annual meeting in Calgary on April 28, 2017. Imperial Oil Ltd. says it and ExxonMobil Canada have entered into an agreement to sell the Montney and Duvernay oil and gas-producing areas of central Alberta to Whitecap Resources Inc. for $1.9 billion.THE CANADIAN PRESS/Jeff McIntosh

CALGARY — Imperial Oil Ltd. says it and ExxonMobil Canada have entered into an agreement to sell the Montney and Duvernay oil and gas-producing areas of central Alberta to Whitecap Resources Inc. for $1.9 billion.

Imperial and ExxonMobil Canada each own 50 per cent of XTO Energy Canada, which includes assets in the liquids-rich Montney and Duvernay resource plays. Imperial's share of the proceeds is $940 million.

The sale is expected to close before the end of the third quarter, subject to regulatory approvals.

The Calgary-based company announced in January that it would market its interests in XTO Energy Canada jointly with ExxonMobil Canada as part of its strategy to focus on key oilsands assets.

The assets to be sold include 227,200 net hectares in the Montney shale, 34,000 net hectares in the Duvernay shale and additional holdings in other areas of Alberta.

Net production from these assets is about 140 million cubic feet of natural gas per day and about 9,000 barrels of crude, condensate and natural gas liquids per day.

This report by The Canadian Press was first published June 28, 2022.

Companies in this story: (TSX:IMO, TSX:WCP)

The Canadian Press