A Look At North America's Oil And Gas Plays
Value Digger | Nov 06, 2012 11:25AM ET
North America is not a "Ponzi scheme" as some analysts and executives claimed back in 2009. Here are some chilling excerpts:
1) The word in the world of independents is that the shale plays are just giant Ponzi schemes and the economics just do not work, an analyst from IHS Drilling Data, an energy research company, wrote in an email on Aug. 28, 2009. 2) And now these corporate giants are having an Enron moment, a retired geologist from a major oil and gas company wrote in a February 2011 email about other companies invested in shale gas. 3) They want to bend light to hide the truth. Money is pouring in from investors even though shale gas is inherently unprofitable, an analyst from PNC Wealth Management, an investment company, wrote to a contractor in a February 2009 email. Reminds you of dotcoms. I do not know whether these analysts are bow in the jobless claims list after such grossly failed statements. Shale plays are acquisition targets as they have been profitable and thus, they are here to stay. As no article has been released yet to capture all the transactions between the foreign suitors and the North American operators, this one will summarize all the M&A activity during the last two years. The North American oil and gas plays get hotter every month.
Canadian-Based Acquisitions
1) South Korea's state-run Korea Gas (Kogas) signed in 2010 an agreement with Canadian independent gas producer Encana (ECA.TO) to jointly develop three unconventional gas fields in British Columbia (BC), Canada. Kogas paid almost C$7.30 per acre and acquired a 50% interest in the fields. Kogas would invest U.S.$1.1 billion over the next five years to jointly develop 720 square kilometers in Encana's Montney and Horn River shale plays in northeastern BC.
2) In 2011, the South African Sasol (TID.TO ). All companies are from the Canadian Stock exchange.
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