Key Shale Natural Gas And Oil Deals
Companies eager to capitalize on the shale revolution are buying up other companies that have deeds to land with access to reserves.
Two multibillion-dollar deals in the first quarter show the interest companies have in scooping up shale plays for the resources and technology. Below are major shale gas and oil acquisitions:
• Marubeni will pay Marathon Oil about $270 million for a 30% stake in a U.S. shale oil project.
• PetroChina pays Encana Corp $5.4 billion for half of a shale gas project.
• BHP Billiton pays Chesapeake Energy Corp $4.75 billion for gas reserves in the Fayetteville Shale in Arkansas.
• South Africa's Sasol pays $1.03 billion for a half share in Talisman Energy Inc shale gas property.
• CNOOC Ltd agrees to pay Chesapeake Energy $1.08 billion in cash for one-third of its Eagle Ford shale in South Texas.
• India's largest listed company Reliance Industries will invest $1.36 billion in the U.S. shale gas assets of Pioneer Natural Resources.
• Royal Dutch Shell says it will pay $4.7 billion cash to buy privately held East Resources, which controls 650,000 net acres (2,600 square kilometers) in the Marcellus Shale.
• British gas producer BG Group said it would pay $950 million to buy a 50% interest in shale gas assets in Appalachia from EXCO Resources.
• S.Korea's KOGAS invests $1.1 billion in developing Encana 's natural gas fields.
• Canada's Progress Energy Resources agreed to buy certain northeast British Columbia Foothills assets for about C$390 million ($366.2 million) from Suncor Energy.
• Exxon Mobil announced its plan to buy XTO Energy Inc for about $30 billion in stock. XTO's resource base is the equivalent of 45 trillion f3 of gas and includes shale gas, tight gas, coal bed methane and shale oil.
• Ultra Petroleum said it would pay about $400 million to an unnamed private company to buy 80,000 net
acres in the burgeoning U.S. Marcellus Shale region, giving it about 250,000 net acres and a potential for 1,800 net drilling sites.
• Denbury Resources said it would buy Encore Acquisition Co for $3.2 billion, creating a company with 426 million barrels of oil equivalent in proved reserves. The acquisition would allow Denbury to leverage its enhanced-oil-recovery business into Encore's properties in Wyoming, Montana, and North Dakota, and would give it a large stake in the Bakken shale on the U.S.-Canada border.
• British gas producer BG Group paid Dallas-based Exco Resources Inc $1.3 billion for an interest in shale gas resources in Texas and Louisiana. The companies said each would own 50% of a venture to which EXCO is contributing 120,000 acres of land in the Haynesville shale gas area and associated gas infrastructure.
• Talon Oil & Gas LLC bought 60% of Denbury Resources' natural gas assets for $270 million.
• Independent oil and gas company Quicksilver Resources agreed a joint venture with Italian energy giant
Eni to develop its Barnett shale properties in Texas. As part of the deal, Eni agreed to buy a 27.5% stake in Quicksilver's Alliance leasehold interests in the Fort Worth basin for $280 million.
• Independent Canadian oil exploration firm TriStar Oil & Gas and Crescent Point Energy Trust agreed to buy Talisman Energy's lands in the prolific Bakken shale region of Saskatchewan and Montana for C$720 million ($567 million). TriStar was later acquired by Petrobank Energy and Resources, which combined its own conventional oil assets with TriStar to create a new company called PetroBakken Energy.