Canadian oil and gas production company Canadian Natural Resources has agreed to purchase all assets owned by Devon Canada Corp. for C$3.775 billion ($2.8 billion) in cash, by June 27.
Assets include 1.5 million acres of land (1 million acres undeveloped) in western Canada, within Canadian Natural’s core areas.
The asset base consists of 100 percent operated long-life, low decline thermal in situ production, as well as 95 percent operated conventional primary heavy crude oil production with both assets adjacent to existing Canadian Natural assets.
Before royalties, the thermal in situ asset yields a production capacity of 108,200 barrels per day, and the conventional production produces 20,100 barrels per day.
According to Steve Laut, Canadian Natural’s executive vice-chairman, Canadian Natural will now have thermal in situ productive capacity of approximately 320,000 barrels per day, with targeted 2019 exit production of approximately 250,000 barrels per day.
As part of the transaction, Canadian Natural also has negotiated a new C$3.25 ($2.4 billion committed term facility. The facility will be available upon closing and is estimated to fully fund the net purchase price, after operations closing adjustments from the effective date, according to Canadian Natural.
