by Luke Jones
Posted 11/13/2012 04:31 pm
Updated 2 years ago
Murphy Oil Corp. of El Dorado said Tuesday that one of its wholly owned subsidiaries, Murphy Oil Co. Ltd., has agreed to take over as operator of Shell Canada Energy's assets in the Seal Lake area of Alberta, Canada.
The deal covers about 148,531 net acres, associated plant and equipment and production of about 2,200 barrels of oil equivalent per day.
The companies did not disclose a purchase price.
The deal, expected to be complete sometime in the fourth quarter, will leave Murphy Oil with more than 331,000 net acres in the area and total production of more than 9,000 barrels of oil equivalent per day.
"As operator of this area and its existing lands, Murphy will be able to advance its growth plans for conventional as well as enhanced oil recovery opportunities," the company said in a news release.
In October, hedge fund Third Point pressured Murphy to make several changes to increase its stock value. One was selling some of its Canadian assets, specifically its 145,000 acres in the Montney natural gas play in British Columbia. Murphy (NYSE: MUR) has still not made this sale.