![Murphy Oil Closes $104M Divestiture of Non-Core Canada Assets](/sites/default/files/styles/hart_news_article_image_640/public/image/2023/09/murphy-oil-closes-104m-divestiture-non-core-canada-assets.jpg?itok=tpNG4uyb)
(Source: Shutterstock.com)
Murphy Oil closed sales of non-core operated assets across its western Canadian footprint.
A subsidiary of Houston-based Murphy Oil Corp. completed a divestiture of non-core assets in the Kaybob Duvernay play and its entire non-operated Placid Montney position.
The sales generated cash proceeds of approximately US$104 million (CA$141 million), Murphy announced in a Sept. 15 news release.
The divestiture, first announced in August, was originally expected to bring in cash proceeds of approximately US$112 million. A portion of the proceeds will be directed to investment in West Africa and Asia.
“We are pleased to unlock the value of this non-core portion of our Kaybob Duvernay and Placid Montney assets,” said Murphy President and CEO Roger W. Jenkins in the release. “We look forward to progressing our capital allocation framework, as well as allocating proceeds towards our new business in Côte d'Ivoire and development in Vietnam.”
The divested assets included the Saxon and Simonette areas of the Kaybob Duvernay, where Murphy holds a 70% working interest as operator.
The sale included Murphy’s 30% working interest in the Placid Montney assets operated by Athabasca Oil Corp., as well as pipelines, batteries and related processing and marketing contracts.
The deal also included 138 net drilling locations across 42,000 net acres in Kaybob Duvernay and 26,000 net acres in Placid Montney.
The combined assets currently produce approximately 1,700 boe/d net, 39% oil. Net proved reserves were 5.3 MMboe as of Dec. 31, 2022.
Also on Sept. 15, Murphy announced plans to redeem its outstanding 5.750% senior notes due 2025. The redemption date for the notes will be Oct. 15; Payment of the redemption price, including accrued and unpaid interest, will be made on Oct. 16, Murphy said in a regulatory filing.
Recommended Reading
Artificial Lift Meets Artificial Intelligence, with Hit and Miss Results
2024-08-23 - Oxy and Chevron are among companies trying to find the sweet spot between data analytics and machine learning with human intervention to optimize production and predict failures before they happen.
What a Trump Win Would Mean for Oil Prices and Stocks
2024-08-23 - A second Trump administration might move the price needle on oil slightly, but OPEC would retain the upper hand in any outcome.
Trans Mountain Appoints New CEO, President
2024-08-23 - Trans Mountain appointed Mark Maki to CEO, succeeding Dawn Farrell who will now be chairman of the board.
Canada’s Train Strike Goes Off—Then Back On—the Rails
2024-08-23 - After the Canadian government stepped in to end the work stoppage, the Teamsters Union indicated that the strike would go forward.
Energy Transition in Motion (Week of Aug. 23, 2024)
2024-08-23 - Here is a look at some of this week’s renewable energy news, including a promising outlook for global offshore wind capacity.