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6 Pages

Shell sells Alberta Deep Basin and Northeast B.C. Montney assets to Tourmaline Oil for US$1 billion

Shell sells Alberta Deep Basin and Northeast B.C. Montney assets to Tourmaline Oil for US$1 billion

Report summary

On 20 October 2016, Tourmaline Oil Corp. agreed to purchase assets from Shell in the Alberta Deep Basin and the Gundy area of the Montney for a cash consideration of US$756 million and US$279 million of Tourmaline shares. The assets produced an average of 24,850 boe/d (liquids and dry gas) at the time of announcement and are a strong strategic fit with Tourmaline's existing portfolio. The deal will cement Tourmaline as one of the largest gas producers in the Western Canadian Sedimentary Basin with projected production surpassing 300,000 boe/d by 2018. Shell announced its intention to divest US$30 billion of assets (upstream and non-upstream) between 2016 and 2018, following its acquisition of BG. This deal takes Shell's total to-date to US$4.5 billion. Shell remains committed to actively work to develop its mature core asset base in both the Montney and Duvernay.

What's included?

This report includes 1 file(s)

  • Shell sells Alberta Deep Basin and Northeast B.C. Montney assets to Tourmaline Oil for US$1 billion PDF - 296.26 KB 6 Pages, 6 Tables, 1 Figures


The upstream oil and gas industry conducts activities against a backdrop of growing energy and environmental challenges. Political instabilities, international conflicts and government and environmental regulation have all impacted the production process.

This has forced companies to re-examine their corporate strategy, moving away from high-risk exploratory drilling to lower-risk exploration in mature basins as they search for increased returns.

This Upstream Oil and Gas Deal Insight report provides an in-depth analysis of this deal. You will also find information about upstream assets and the strategic rationale behind the deal.

For investors and businesses, this deal insight report provides an understanding of the effect this deal will have on the market, including oil and gas pricing and assumptions. Use it to keep up to date with deal announcements, gain expert insights and analyse potential developments that might affect your strategy.

Wood Mackenzie goes beyond company-reported data and announcements to give you an independent and informed view. Our unique valuation metrics are underpinned by our deep understanding of upstream assets and companies. We help you objectively benchmark and evaluate asset and corporate deals so you can compare deal economics around the world.

  • Executive summary
  • Transaction details
  • Upstream assets
  • Deal analysis
  • Upsides and risks
  • Strategic rationale
    • Tourmaline
    • Shell
  • Oil & gas pricing and assumptions

In this report there are 7 tables or charts, including:

  • Executive summary
    • Executive summary: Table 1
  • Transaction details
  • Upstream assets
    • Upstream assets: Table 1
  • Deal analysis
    • Gundy Montney production profile
    • Deal analysis: Table 1
    • Deal analysis: Table 2
  • Upsides and risks
  • Strategic rationale
  • Oil & gas pricing and assumptions
    • Oil & gas pricing and assumptions: Table 1
    • Oil & gas pricing and assumptions: Table 2
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