Kelt to sell BC Montney assets to ConocoPhillips for $ 510 million

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CALGARY – Kelt Exploration Ltd. says it sells assets in British Columbia that account for almost half of its oil and gas production for $ 510 million in cash to Houston-based ConocoPhillips.The Calgary-based company says the sale of production and development assets in the Montney area will leave it debt-free while remaining one of the region’s biggest players.

In a separate statement, ConocoPhillips says the lands are adjacent to its existing assets and will increase its exposure to the core of Montney’s liquid-rich resource.

Kelt says its production will drop from around 30,800 barrels of oil to 16,500 boe / d when the deal goes through.

It indicates that ConocoPhillips has also agreed to assume approximately $ 41 million in financial obligations related to the assets purchased.

Kelt says its board of directors decided to sell the assets to strengthen its balance sheet in the current uncertain economic environment and because its large inventory of future drilling locations was not reflected in its market valuation.



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