(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
Marketed: BP E&P GoM ORRI Opportunity
2024-10-16 - BP Exploration & Production Inc. retained Indigo Energy Advisors for an offshore overriding royalty interest acquisition opportunity in the Gulf of Mexico and Louisiana.
Brigham Exploration Grows Permian Footprint in Non-Op Assets Deal
2024-12-17 - Brigham Exploration is significantly adding to its Permian Basin non-operated portfolio with an acquisition of 7,000 acres from Great Western Drilling.
Gran Tierra Enters Montney Shale JV with Logan Energy
2024-11-29 - In addition to its joint venture with Logan Energy Corp., Gran Tierra Energy Inc. also announced a seventh successful discovery well in Ecuador.
Exxon Mobil Completes Purchase of FPSO Offshore Guyana
2024-12-19 - Exxon Mobil Corp. paid $535 million to SBM Offshore for the FPSO, which will operate the unit through 2033.
Diversified Closes East Texas NatGas Bolt-on
2024-10-30 - Diversified Energy said the acquisition, from a regional operator, adds the equivalent of 70 Bcf of proved developed producing with a PV-10 of $89 million.
Comments
Add new comment
This conversation is moderated according to Hart Energy community rules. Please read the rules before joining the discussion. If you’re experiencing any technical problems, please contact our customer care team.