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Kelt said the transaction, which accounts for nearly half of its production, would eliminate the company’s debt while maintaining its profile as one of the largest players in the area. ConocoPhillips has also agreed to take on around $41 million in financial obligations related to the purchased assets.

“Though the company (Kelt) has disposed of 27 per cent of its Montney acreage, and nearly 50 per cent of its current production, this transaction will afford it the opportunity to eliminate any leverage overhang on the stock, a relative strength given the debt stress encumbering many of its peers, while further allowing it to refocus its efforts on its remaining 3x Montney positions when commodity prices show signs of recovery,” said Robert Fitzmartyn, analyst at Stifel FirstEnergy in a report.

Canada’s oil, gas & consumable fuelssector has seen just 17 largely small deals valued at $822 million in the first six months of the year, compared to 25 deals worth $6.8 billion during the same period last year, according to FP Data.