- Japan Third Quarter GDP Jumps; 2010 Growth May Slow
- Analysis: APEC Nations Back Face-Saving Climate Plan
- Shift Into High-Quality Stocks Could Move Market Higher
- Drug Study Questions Effectiveness of Merck's Drugs
- Military Arms Race Dominates Dubai Air Show
- Buffett: I Haven't Bought AMEX Shares in Years
- Disaster Film '2012' Drowns Rivals at Box Office
- Cities With the Most Home Price Reductions
- Cramer: 5 Earnings Reports to Watch Next Week
- CNBC Video: Warren Buffett & Bill Gates - Keeping American Great
- U.S. Stocks Rally for the Second Straight Week
- Dollar is Not Plunging—So 'Calm Down': Market Strategist
- Strategists Say Markets Have More Upside — But How Much?
- Hirschhorn: Risk-Averse Traders
- Roginsky: A Funny Thing Happened on the Way to Financial Reform
- This Year's Biggest Thanksgiving Leftover: Cash
- TV Series Inks Unique Deal For Fight
- First Time Buyers Rescue Housing: Realtors
- Bristol-Myers splits off Mead Johnson Nutrition
- Frontier refinery plans to fight $6.8M EPA fine
- Copano Energy founder Eckel dies at 58
- Dobbs says CNN departure was ‘amicable’
- Grupo Mexico wins back copper mining unit Asarco
- Newspaper: Stimulus brings few private-sector jobs
- Currency a low priority in Obama’s China visit
- Indecisive Wall Street likely to stay that way
- GE forms China JV to make airplane electronics
Text Size 
NEW YORK - UTS Energy Corp. will sell its 50 percent stake in three Alberta oil sands properties to Exxon Mobil Corp. and Imperial Oil Ltd. for C$250 million (US$231.5 million), the company said Monday.
The operator of oil sands — a tar-like bitumen that is extracted using mining techniques — said the deal should generate after-tax proceeds of about C$200 million.
This, along with UTS's $440 million in cash and cash equivalents, leaves the company well positioned to fund its Fort Hills Project and its portfolio of other development opportunities, UTS said.
The deal also highlights Exxon Mobil's movement toward investing in greater production. Recently, Exxon — which owns a large stake in Imperial Oil — has faced criticism for not boosting production more rapidly. This purchase from UTS is a small deal, but it is still a step by the world's largest publicly traded oil company toward raising production volumes.
Under the terms of the deal, UTS will sell its interest in lease nos. 421, 022 and 023. It expects the deal to close over the next month.
"This transaction demonstrates the success of UTS' strategy of generating cash reserves organically, by finding new oil sands resources," said UTS CEO William Roach.
Shares of Exxon advanced 22 cents to $71.89, while Imperial Oil shares fell 92 cents to $36.73 in afternoon trading.
Print
Email
- Where, what, how.
- Warren Buffett and Bill Gates spoke to Columbia students, and Buffett made the students a startling offer.
- For the chief of cable company Comcast, growth has been about making deals – generally very large deals.
- Some companies may start using insurance to shift carbon risk from their balance sheets to maybe... yours?
- The president and founder of Genesis Today wants to improve America’s health, and thinks Wal-Mart can help.
- Switzerland's privacy watchdog is taking legal action to force Google to make changes to its Street View service.
Data is a real-time snapshot *Data is delayed at least 15 minutes