A ConocoPhillips sign is seen in this file photo.RICK WILKING/Reuters
Canadian Natural Resources Ltd. is among the buyers of oil and gas assets that ConocoPhillips has been marketing as deal-making in the oil patch picks up following a slow summer.
The U.S.-based oil major has seven properties in Alberta and Northeast British Columbia on the block that produce a total of 34,842 barrels of oil equivalent per day, according to a sales notice posted on the website of Bank of Nova Scotia's acquisition and divestiture arm, Scotia Waterous.
"Canadian Natural can confirm it has signed an agreement with ConocoPhillips for the purchase of four asset packages that were being marketed by ConocoPhillips," Canadian Natural spokeswoman Julie Woo said in an e-mail. "These assets are located in Northeast B.C., Northwest Alberta, Southern Alberta, and in Southwest Saskatchewan."
Ms. Woo declined to disclose the price being paid.
A source familiar with the transactions said that all of the agreements for the ConocoPhillips assets being auctioned should be concluded in the next seven to 10 days.
"All of the assets are expected to be sold – 60 per cent of the assets now have a contract in place," said the source, who spoke on condition of anonymity.
ConocoPhillips's expected proceeds are not yet known, though Bloomberg estimated last month that the properties could fetch $1-billion or more.
Acquisition prices per barrel of daily production vary widely based on the commodity being produced, costs, growth potential, the competitive environment and a host of other factors.
"We continue to work with interested parties on these assets," said Rob Evans, spokesman for ConocoPhillips in Calgary. "As for potential proceeds, we don't release financial details regarding our asset sales."
The properties comprise 3.9-million gross acres and have been "under-capitalized in recent years," according to Scotia Waterous.
The impending sales come amid a recent flurry of deals in the oil patch. On Tuesday, Orlen Upstream Canada Ltd., a subsidiary of Polands's PKN Orlen S.A., said it would buy Kicking Horse for $293-million.
Activity this month includes Suncor Energy Inc.'s $4.3-billion hostile offer for Canadian Oil Sands Ltd., Encana Corp.'s $900-million (U.S.) decision to sell Colorado oil and gas properties to a partnership led by Canada Pension Plan Investment Board and the Superior Plus Corp. takeover of Canexus Corp.