Suncor Energy sells Montney acreage to Canbriam Energy for stake in company
Suncor Energy Inc. has signed a deal to acquire a minority interest in Canbriam Energy Inc. in exchange for its northeast B.C. mineral land holdings and $52 million.
Under the deal, Suncor will acquire a 37 per cent stake in the privately held company.
Suncor CEO Steve Williams says the deal is part of its strategy to reduce production of natural gas due to poor anticipated prices.
He says turning the Montney prospective acreage over to Canbriam is putting it in the hands of a partner that has the technological expertise and focus to best develop it.
Canbriam says the additional land will complement its existing Montney land position and infrastructure.
The transaction is subject to regulatory approval and is expected to close in the first quarter of 2018.