ConocoPhillips is increasing its stake in the Montney region. The Houston-based company says it’s spending $120 million U.S. on just over 14,000 hectares of prospective drilling rights in the area.
It has also bought almost 100,000 hectares in the U.S., largely in Louisiana. Executive vice president of strategy, exploration and technology Matt Fox says the deals are part of their strategic priorities.
“We have been laser focused on strengthening our portfolio by divesting non-core properties, while adding high-value resource opportunities for future investment. The acreage we’ve acquired in Louisiana and the Montney has the potential to add to our low cost of supply resource base without requiring significant near-term capital commitments.”
The new land is next to its current properties in the Montney. The company now has around 56,000 hectares in the play near the border between Alberta and B.C.
ConocoPhillips sold most of its Canadian assets to Calgary’s Cenovus Energy just over a year ago for $17.7 billion. That included Cenovus’ half-share in a venture between the two companies in northern Alberta and most of its Deep Basin assets in Alberta and B.C.