Celtic Says Yes to $3.1B ExxonMobil Takover

Celtic Exploration Ltd.'s shareholders have approved its sale to ExxonMobil for $3.1 billion. The company reported Friday a vote on the deal was supported by investors holding 99.8 percent of the shares and 71.8 percent of its debentures.

Celtic, a Calgary, Alberta, Canada-based oil and company, is focused on exploration, development and production of crude oil and natural gas resources primarily in west central Alberta. The company specifically holds large acreage positions in the Montney and Duvernay resource gas plays.

Celtic shareholders have also approved the private placement of up to six million common shares of a spinoff company named Kelt Exploration Ltd. to raise approximately $13.9 million. The new publicly listed junior oil and gas exploration and production company will be led by Celtic's current management team, including David J. Wilson and Sadiq H. Lalani.

Kelt will hold oil and natural gas assets in Grande Cache, Alberta; Inga, British Columbia; and an oil prospect at Karr, Alberta that will produce about 3,300 barrels of oil equivalent per day.

ExxonMobil offered $24.50 per share.