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Bruce March, president and CEO of Imperial Oil, addresses the company's annual meeting in Calgary, Thursday, April 28, 2011.
Bruce March, president and CEO of Imperial Oil, addresses the company's annual meeting in Calgary, Thursday, April 28, 2011.
(Jeff McIntosh/THE CANADIAN PRESS)

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Imperial, Exxon gas up with Celtic Exploration partnership

Imperial Oil is about to be less skewed to oil prices.

After mulling its options, the company's board decided to exercise its right to partner with Exxon Mobil Corp., its majority owner, in the $3.1-billion acquisition of Celtic Exploration Ltd. The two will split the deal 50-50.

Right now, about 85 per cent of Imperial's production is weighted to oil, with the company involved in some of the biggest oil sands projects, such as Syncrude. Celtic on the other hand has a total of 545,000 net acres in the Montney shale and just over 100,000 acres in the Duvernay shale, and Imperial will get the rights to half of that.