Calgary-based Whitecap Resources Inc. has clinched a 1,020-square-mile northern Alberta spread of Montney and Duvernay assets held by ExxonMobil companies in an all-cash deal valued at C$1.9 billion ($1.5 billion).

The XTO Energy Canada assets, jointly owned by ExxonMobil Canada and its majority-owned affiliate Imperial Oil Ltd., produce about 140 MMcf/d of natural gas and 9,000 b/d of liquids. Imperial had signaled earlier this year that the XTO unit would be sold. 

“Our initial plans are to grow this asset to 50,000-60,000 boe/d over the next three to five years, at which point there will still be 20 years of Tier One drilling inventory to maintain production,” Whitecap management stated.

Whitecap’s focus is in Alberta, British Columbia and Saskatchewan. In the...