In a statement U.S. oil major ConocoPhillips said, it has agreed to acquire land from from Kelt Exploration Ltd in Canada’s Montney shale oil play, in a deal worth $375 million.

The 140,000 acres of land that has been purchased in British Columbia are adjacent to its own lands, said ConocoPhillips.

The oil resource amounts to 1 billion barrels of oil equivalent.

The purchase allows the company to extend its existing position at an attractive cost, said Matt Fox, ConocoPhillips’ CEO.

The development comes three years after Houston-based ConocoPhillips sold much of its Canadian assets to Cenovus Energy, part of a multi-year withdrawal of foreign producers from Canada.

In April 2020, ConocoPhillips reduced production at its Surmont Canadian site by 100,000 barrels of oil per day.

In a statement Kelt Exploration said, the sale would strengthen its finances during an uncertain economic time, while leaving it a large inventory of future drilling sites.

The deal is expected to close August 21.

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