ConocoPhillips has agreed to acquire acreage in western Canada from Kelt Exploration Ltd. for about $375 million in cash, as the company expands its reach into the liquids-rich area.

The company will acquire 140,000 acres in the Montney zone, adjacent to the company's existing position in the area, ConocoPhillips said.

The deal will add more than 1 billion barrels of oil equivalent of high-value resource with an attractive supply cost, the company said. Production associated with the acquired asset is expected to be around 15,000 barrels of oil equivalent per day, it added.