The Company continued to add to its land position in unconventional gas with the acquisition of 66,400 acres in the deep basin area near Hinton, Alberta. In total, Shell Canada acquired a 100 per cent interest in 7 parcels for a total price of $99 million. These lands are additional to 58,000 acres acquired in the deep basin of northeastern British Columbia in June 2005.
At the December 14th sale, the Company also acquired an interest in approximately 20,000 acres in the northeastern B.C. foothills offering conventional gas exploration prospects in Triassic, Permian and other deep structures.
The Company’s investment in oil sands continued with the acquisition of additional leases with mining potential in the Athabasca area. Three leases were acquired with a combined area of 22,800 acres for a total price of $86 million. Leases 309 and 310 were acquired at the December 14th land sale and Lease 15 was acquired at the November 30th sale. These lands are additional to four other leases with a combined area of 45,900 acres acquired in the third quarter of this year.
The Company also recently purchased 12 quarter sections of private land adjacent to its Scotford complex near Fort Saskatchewan to accommodate future additions of upgrading capacity.
Clive Mather, Shell Canada’s President and CEO said, “During 2005 we have invested more than $350 million in additional land to support our growth aspirations. With these recent purchases we have more than tripled our basin-centered gas landholdings this year, providing us additional opportunity to grow our Western Canada gas production. And we have increased our landholdings in Athabasca by more than 50 per cent during 2005. While drilling will be needed to confirm the resource potential, we expect these lands will provide additional support to the continued, long-term growth of our oil sands business.”
For further information contact:
Investor Inquiries:
Jim Fahner
Manager, Investor Relations
(403) 691-2175
Media Inquiries:
Jan Rowley
General Manager, Public Affairs
(403) 691-3899
This document contains “forward-looking statements” based upon current expectations, estimates and projections of future production, project startup and future capital spending. Forward-looking statements include, but are not limited to, references to future capital and other expenditures, drilling plans, construction activities, the submission of regulatory applications, refining margins, oil and gas production levels, resources and reserves estimates.
Readers are cautioned not to place undue reliance on forward-looking statements. Forward-looking statements involve numerous risks and uncertainties that could cause actual results to differ materially from those anticipated by the Corporation. These risks and uncertainties include, but are not limited to, the risks of the oil and gas industry (including operating conditions and costs), demand for oil, gas and related products, disruptions in supply, project schedules, the uncertainties involving geology of oil and gas deposits, the uncertainty of reserves estimates, fluctuations in oil and gas prices and foreign currency exchange rates, general economic conditions, commercial negotiations, changes in law or government policy, and other factors, many of which are beyond the control of the Corporation.
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