Shell Canada acquires significant land position in British Columbia

CALGARY, June 23 /CNW/ - Shell Canada announced today that it has
acquired approximately 58,000 acres of land in northeastern British Columbia
offering exploration and development prospects in the deep basin area.
The lands were acquired in today's B.C. land sale for a total price of
$85 million, providing Shell Canada a 100 per cent interest in 12 parcels. In
2004, Shell established an initial land position to the east of this area in
Alberta and drilled four wells. Drilling on the newly acquired lands is
planned for next winter.
Ian Kilgour, Senior Vice President of Exploration and Production, Shell
Canada said, "Shell Canada sees the foothills portion of the deep basin as an
exciting opportunity to exploit its core technical strengths in deep
structured plays. This additional land doubles our basin-centred gas
landholdings and gives us a platform to step up our exploration and
development efforts in this area. Building a strong position in the deep basin
is in line with Shell's strategy to expand its Western Canada gas production".

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