Whitecap Resources To Buy XTO Energy For $1.9 Billion

Imperial Oil (IMO) and ExxonMobil (XOM) have agreed to sell the Montney and Duvernay oil
and gas-producing areas of Alberta to Whitecap Resources (WCP) for $1.9 billion.

Imperial and ExxonMobil each have a 50% stake in XTO Energy Canada, which includes assets
in the Montney and Duvernay resource area that’s located in central Alberta.

The sale is expected to close in this year’s third quarter, and Imperial Oil's share of the
proceeds is estimated at $940 million.

Calgary-based Imperial Oil announced in January of this year that it would market its stake in
XTO Energy Canada jointly with ExxonMobil as part of a strategy to focus on key oilsands
assets and unload other ones.

The assets to be sold to Whitecap Resources include 227,200 hectares of land in the Montney
shale region and 34,000 hectares in the Duvernay shale area.

Production from XTO Energy Canada includes 140 million cubic feet of natural gas per day and
9,000 barrels of crude oil, condensate, and natural gas liquids each day.

Imperial Oil’s stock is up 35% year to date at $63.54 per share.