Whitecap makes $855-million purchase of oil and gas assets from Imperial Oil

CALGARY – Imperial Oil Ltd. (TSX:IMO) has agreed to sell some of its producing oil and gas assets in Western Canada for $855 million to Whitecap Resources Inc. (TSX:WCP).

In a related deal, Whitecap is selling gas processing equipment and reserves to Keyera Corp. (TSX:KEY) 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.