Murphy Oil Company Ltd. has entered into an agreement with Shell Canada Energy to purchase additional interests in lands and take over as operator of Shell’s assets in the Seal Lake area of Alberta, Canada. The agreement covers approximately 148,531 net acres, associated plant and equipment, production in the order of 2,200 barrels of oil equivalent per day and an estimated 14.0 million barrels of oil equivalent of proved and probable reserves.
Upon completion of the transaction expected by the end of 2012, the company’s acreage position in the area will total over 331,000 net acres with total production over 9,000 barrels of oil equivalent per day. As operator of this area and its existing lands Murphy will be able to advance its growth plans for conventional as well as enhanced oil recovery opportunities.