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Shell To Sell Non-core Canadian Shale Assets To Crescent Point Energy For $707 Mln

Royal Dutch Shell PLC (RDS-B,RDSB.L,RDSA.L,RDS-A) said it has reached an agreement with Canadian energy company Crescent Point Energy Corp. (CPG.TO) to sell its Duvernay shale light oil position in Alberta, Canada for a total consideration of $707 million or C$900 million.

The consideration is comprised of $550 million in cash and 50 million shares, valued at $157 million, in Crescent Point Energy stock.

The transaction has an effective date of January 1, 2021. Subject to regulatory approvals, the transaction is expected to close in April 2021.

The sale includes the transfer of around 450,000 net acres in the Fox Creek (Kaybob) and Rocky Mountain House (Willesden Green) areas, along with related infrastructure, currently producing around 30,000 barrels of oil equivalent per day or boe/d from more than 270 wells.

Crescent Point Energy will retain the field employees and several technical and commercial roles that support the assets.

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