Murphy Oil Corp., which in late April announced the sale of its stake in a Canadian oil sands venture, announced Friday that its Canadian subsidiary had closed a $375 million deal to acquire interests in operations in two oil-producing areas of Alberta.
In the joint venture with the Athabasca Oil Corp. of Calgary, Murphy will pay $486 million Canadian, subject to closing adjustments, for a 70 percent operated working interest in the Kaybob Duvernay fields and a 30 percent non-operated stake in the liquids-rich Placid Montney oil lands.
According to a news release from the publicly traded oil and gas giant based in El Dorado, Murphy (Nasdaq: MUR) will pay the equivalent of $206 million in cash and the remaining $169 million as a carry-over for a period of four to five years.
Roger W. Jenkins, Murphy’s president and chief executive officer, said in a statement that the venture “complements our existing unconventional business in the Eagle Ford Shale and the Montney,” adding that the deal would add about 2,100 barrels a day to Murphy’s second-quarter production. He added that the complany plans to spend about $40 million more this year on “completions, infrastructure and facilities.”
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