Imperial Oil, ExxonMobil Canada Buy ConocoPhillips' Clyden Oil Sands Lease Stake

(RTTNews) - Imperial Oil Ltd. (IMO, IMO.TO) and ExxonMobil Canada (XOM) have purchased ConocoPhillips' interest in the Clyden oil sands lease, 150 kilometres south of Fort McMurray, Alberta. Comprising 226,000 net acres of undeveloped land, Clyden is located near the southern edge of the Athabasca oil sands and south of Fort McMurray, Alberta.

Imperial Oil Resources would buy a 27.5 percent shareholding in the leasehold, while ExxonMobil Canada would acquire the final 72.5 percent stake. The higher initial interest for ExxonMobil Canada enables it to bring in a partner, after which it would remain an equal partner with Imperial. The deal value amounts to around C$751 million, or $720 million before customary adjustments.

ConocoPhillips currently holds nearly 1.1 million net acres of land in the Athabasca Region of northeastern Alberta. ConocoPhillips expects an after-tax gain of roughly $450 million, which would be recognized upon closing anticipated later in the third quarter of 2013. The transaction is subject to federal Competition Bureau review.