ConocoPhillips Acquires Montney Acreage From Kelt Exploration for $390 Million

Updated 1 year ago

ConocoPhillips has signed a definitive agreement to acquire additional Montney acreage from Kelt Exploration for $375 million in cash and the assumption of $30 million in financing obligations for partially-owned infrastructure. This includes 140,000 net acres in the Inga-Fireweed asset Montney zone which is adjacent to the company's existing acreage. This increases ConocoPhillip's Montney position to 295,000 net acres with 100% working interest.

Current production from the acquired acreage is 15,000 boe/d with over 1 billion boe of resources with an all-in cost of supply in the mid $30/boe. This also includes over 1,000 well locations. The deal closed in August 2020 for $390 million plus $30 million in financing obligations for associated partially-owned infrastructure.

ConocoPhillips EVP & COO

We have tracked and analyzed this adjacent acreage position for a long time. It represents a high-value extension of our existing Montney position, and we’re pleased to capture this opportunity at an attractive cost of supply that meets our criteria for resource additions.