Canadian Manufacturing

Whitecap buying oil and gas assets from Imperial in $855M deal

Also selling gas processing equipment, reserves to Keyera Corp. in separate deal worth $113-million

March 17, 2014  by The Canadian Press

CALGARY—Imperial Oil Ltd. has agreed to sell some of its producing oil and gas assets in Western Canada for $855-million to Whitecap Resources Inc.

In a related deal, Whitecap, formerly known as Spitfire Energy Ltd., is selling gas processing equipment and reserves to Keyera Corp. for $113-million.

The deals are expected to close in May.

Imperial says the lands in Alberta and British Columbia produced the equivalent of 15,000 barrels per day last year, split evenly between oil and gas.


Calgary-based Whitecap says its annual production will nearly double to the equivalent of 33,500 barrels per day of oil and gas.

Whitecap will use proceeds from its side deal with Keyera to help pay for the purchase and has arranged to sell $500-million of equity and debt securities to fund the rest.