Canadian Natural Resources Ltd. is scooping up liquids-rich Montney Shale wells and growth prospects in northern British Columbia (BC) with its takeover of Storm Resources Ltd.

Montney shale

The acquisition, announced Wednesday, gives the Calgary-based producer 170 square miles of the Montney, where Storm reports liquid byproducts average 20% of well flows. Current production is averaging 136 MMcf/d of natural gas and 5,600 b/d of liquids.

The deal is valued at C$960 million ($768 million), including C$766 million for 122 million Storm shares, C$188 million ($150.4 million) in Storm debt, plus transaction costs.

“This acquisition provides existing production and infrastructure that complements our current assets in the area,” said Canadian Natural President Tim McKay. “These...