ExxonMobil Acquires Celtic Exploration
The Canadian subsidiary of oil major ExxonMobil (NYS: XOM) announced that it will acquire Canadian oil and gas driller Celtic Exploration, according to an ExxonMobil statement. Stockholders of the latter will be paid C$24.50 ($24.91) per share and receive half a share of a new company. The newly created entity is to hold assets not directly included in the buyout agreement.
That C$24.50 represents a 35% premium to Celtic's most recent closing price. The shares are currently listed on the Toronto Stock Exchange.
The total buyout amounts to C$2.59 billion ($2.63 billion) plus debt considerations. The purchase gives the company several key Celtic Exploration assets such as 545,000 net acres in British Columbia's Montney shale and 104,000 net acres in Alberta's Duvernay shale. All told, the assets held by the Canadian company produce around 72 million cubic feet and 4,000 barrels of crude, condensate, and natural gas liquids per day. According to estimates from Celtic Exploration quoted in ExxonMobil's statement, these assets hold around "128 million oil equivalent barrels of proved plus probable reserves, of which 24% are crude, condensate, and natural gas liquids and 76% natural gas."
The buyout agreement is subject to approval by Celtic Exploration shareholders and the relevant Canadian regulatory authorities.
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The article ExxonMobil Acquires Celtic Exploration originally appeared on Fool.com.Eric Volkman has no positions in the stocks mentioned above. The Motley Fool owns shares of ExxonMobil. Try any of our Foolish newsletter services free for 30 days. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.
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