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Agreements reached for the sale of oil and gas assets in western Canada
| Calgary, AB,
December 6, 2005
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Imperial and ExxonMobil Canada have entered into agreements with ARC Resources
Ltd. for the sale of assets which include Imperial's interests in the Redwater
field (operated by Imperial), as well as its interest in the North Pembina
field (operated by ExxonMobil Canada)and ExxonMobil Canada’s interests in the
North Pembina field. The purchase price of the assets to be acquired by ARC
is $480M (Cdn). Both properties are located in Alberta -- Redwater, near
Edmonton; North Pembina, near Drayton Valley.
Oil and gas
production from these two properties averaged approximately 5,460
oil-equivalent barrels a day during the third quarter of 2005.*
There are 21 employees and one contractor associated with Imperial's
operations at Redwater. It is anticipated these employees will be offered
continued employment by the purchaser.
There are 25 employees
and two contractors associated with the North Pembina operation. These are
ExxonMobil Canada employees seconded to Imperial under the 2005 synergy
agreement between the two companies. It is anticipated these employees will be
offered continued employment by the purchaser.
*Oil-equivalent barrels (OEB) may be misleading, particularly if used in
isolation. An OEB conversion ratio of 6,000 cubic feet to one barrel is based
on an energy-equivalency conversion method primarily applicable at the burner
tip and does not represent a value equivalency at the well head.
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