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Oil & Gas

Exxon Mobil buys Canadian oil & gas company Celtic Exploration

October 17, 2012
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CALGARY, Canada — Exxon Mobil Corp. has agreed to buy Canadian oil and gas company Celtic Exploration for about C$3.1 billion.

The companies today announced they have to come to an agreement for the purchase by a subsidiary of ExxonMobil Canada of all of Celtic’s outstanding common shares at a cash price of C$24.50 per share.

Celtic shareholders will receive 0.5 of a share of a new company, Spinco, for each Celtic common share.

RELATED: ExxonMobil CEO says natural gas will be ‘global economic enabler’

Under the terms of the agreement, ExxonMobil Canada will acquire 545,000 net acres in the liquids-rich Montney shale, 104,000 net acres in the Duvernay shale and additional acreage in other areas of Alberta.

“This acquisition will add significant liquids-rich resources to our existing North American unconventional portfolio,” said Andrew Barry, president of ExxonMobil Canada. “Our financial and technical strength will enable us to maximize resource value by leveraging the experience of ExxonMobil subsidiary XTO Energy, a leading U.S. oil and natural gas producer which has expertise in developing tight gas, shale oil and gas and coal bed methane.”

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