CNOOC's $17.9 billion purchase is China's biggestIn the priciest E&P deal to date involving a Chinese firm, state-owned China National Offshore Oil Corp. agreed to acquire Nexen Inc. for $27.50/share in cash, a 61% premium to Nexen's July 20 closing price. At $17.9 billion, including $2.8 billion in assumed debt, the deal is nearly four times the value of Sinopec's 2010 acquisition of a stake in Syncrude Canada for $4.65 billion, previously the largest Chinese E&P investment in Canada. Purchase will be funded from existing cash and external...
Aug 07, 2012
CNOOC makes major acquisition with $17.9 billion Nexen buyState-owned China National Offshore Oil Corp. made the largest overseas acquisition ever by a Chinese company, purchasing Nexen Inc. for $17.9 billion, including $2.8 billion in debt. The $27.50/share cash portion of CNOOC's offer is a 61% premium to Nexen's prior-day closing price.CNOOC gains 207,000 boepd of production, ~900 MMboe of 1P reserves, 2.0 Bboe of 2P reserves and 5.6 Bboe of contingent resources. This hikes CNOOC's production ~20% and its proved reserves...
Jul 27, 2012
China's CNOOC buys Nexen for $17.9 billionContinuing the recent trend of Asian companies investing in Canada, state-owned China National Offshore Oil Corp. made its largest acquisition to date, agreeing to acquire Nexen Inc. for US$27.50/share in cash"”a 61% premium to Nexen's prior-day closing price. Including $2.8 billion in assumed debt the deal comes to $17.9 billion, which will be funded from existing cash and external financing.CNOOC chief Li Fanrong said the company will work actively to promote approvals from the...
Jul 25, 2012
China's CNOOC buys Nexen for US$17.9 billionContinuing the recent trend of Asian companies investing in Canada, state-owned China National Offshore Oil Corp. made its largest acquisition to date, agreeing to acquire Nexen Inc. for US$27.50/share in cash-a 61% premium to Nexen's prior-day closing price. Including $2.8 billion in assumed debt the deal comes to $17.9 billion, which will be funded from existing cash and external financing.CNOOC chief Li Fanrong said the company will work actively to promote approvals from the...
Jul 24, 2012
China's CNOOC buys Nexen for $17.9 billionContinuing the recent trend of Asian companies investing in Canada, state-owned China National Offshore Oil Corp. made its largest acquisition to date, agreeing to acquire Nexen Inc. for $27.50/share in cash-a 61% premium to Nexen's prior-day closing price. Including $2.8 billion in assumed debt the deal comes to $17.9 billion, which will be funded from existing cash and external financing.
CNOOC chief Li Fanrong said the company will work...
Jul 24, 2012
Oil & gas deal values total $170 billion in 2011Canadian M&A activity for upstream oil and gas deals last year totaled ~US$16 billion in 197 deals, reports PLS Inc. in conjunction with international partner Derrick Petroleum Services. The Canadian deals represent 9% of global M&A deal value and 27% of the number of deals globally. In both categories, Canadian activity was second only to that of the U.S. The information is from PLS's Global M&A Transactions database and includes all upstream oil and gas deals with values...
Jan 03, 2012
CNOOC & Nexen team up for Gulf of Mexico projectChina's state-owned offshore oil company CNOOC and Canada's independent explorer Nexen have formed a JV that will see CNOOC initially gaining access to about six exploration wells in deepwater Gulf of Mexico. CNOOC immediately keeps a 20% WI in the Kakuna, Angel Fire and Cypress exploration wells. At a later stage, CNOOC will have the option to acquire a 10-25% stake in three other exploration wells. The financial terms of the deal were not disclosed. Drilling at the Kakuna well is currently in...
Dec 14, 2011
Court approves CNOOC acquisition of OPTI CanadaOPTI Canada Inc. has received approval from the Court of Queen's Bench of Alberta for Chinese firm CNOOC Ltd. to buy the struggling company. In July 2011, CNOOC agreed to buy Opti Canada for $34 million and assumption of $2 billion in debt. CNOOC expects the transaction to close in...
Sep 07, 2011
CNOOC snaps up Opti Canada for $2.1 billionChina is ramping up its stake in Canadian oil sands with cash-rich China National Offshore Oil Ltd. swooping in to buy troubled Opti Canada for $34 million in cash while assuming the oil sands producer's debt of more than $2.0 billion. CNOOC will pay $1.179-billion to lenders who hold OPTI's second lien notes; $37.5-million to backstop parties; $34-million to shareholders; and assume $825-million of first lien notes, OPTI said in a statement.
"The transaction strengthens our Canadian presence...
Aug 09, 2011
Divide & conquerTwo seemingly contradictory trends are evident with some companies splitting in two (ConocoPhillips, Williams, El Paso, Marathon) while big companies spend billions on unconventional plays (BHP Billiton, Royal Dutch Shell, ExxonMobil, Chevron, CNOOC and Marathon again). The strategies have the same goal--enhance shareholder value. Investors should find the purer plays easier to value and growth strategies easier to evaluate. Since December 2009, big companies, mostly foreign, have spent $86...
Jul 29, 2011
China's CNOOC to acquire OPTI Canada in US $2.1B dealOPTI Canada Inc. has entered into an agreement with CNOOC Ltd. for a subsidiary of CNOOC to acquire the second lien notes and all of the outstanding shares of OPTI. The total value of the transaction is ~US$2.1 billion. CNOOC Ltd. is China's largest producer of offshore crude oil and natural gas and one of the largest independent exploration and production companies in the world. OPTI had filed for creditor protection under Canada's Companies' Creditors Arrangement Act on July 13, 2011.
OPTI...
Jul 20, 2011
OPTI Canada lowers loss as revenue improvesProduction at OPTI Canada Inc.�s Long Lake Project averaged ~25,500 b/d (8,900 b/d net) in Q1, lower than Q4 average of ~28,100 b/d (9,800 b/d net). Steam injection also decreased to average ~146,000 b/d compared with 157,900 b/d in the previous quarter. April production at press time was ~26,300 b/d (9,200 b/d net) with steam rates of ~131,700 b/d.
OPTI ran a net loss of $27 million for the quarter, an improvement compared with a net loss of $41 million in Q1 of 2010. Revenues were...
Jun 02, 2011
Nexen takes a tumble on Long LakeShares of Nexen Inc. fell nearly 4% after it announced that output at its $6.1 billion Long Lake oil sands project will remain below its design capacity through next year as it continues to finesse the bugs out of the project. Shares of Nexen's 35% partner Opti Canada fell even farther, losing 14% to close at $0.74.
Nexen says it expects to produce between 38,000 - 45,000 barrels of bitumen per day at its Long Lake facility, up from about 25,000 BPD this year, but that's still not even close...
Nov 16, 2010
Closings Briefs Canada (Short Stories: Dec. 19, 2011)• Celtic Exploration Ltd. closed its previously announced acquisition of natural gas assets at Grande Cache, Alberta, adjacent to Celtic's core area at Resthaven, for $50 million in cash. The assets are located in Alberta between townships 58 and 62 and ranges 6 to 10 west of the sixth meridian, directly west of Celtic's Resthaven lands. Recent natural gas production from the assets are ~15 MMcf/d, of which ~50% is operated. The acquisition also includes ~61,000 net acres (95 sections) of...
Dec 19, 2011
Acquisition Briefs (Short Stories; Nov 23, 2011)- Canadian Quantum Energy Corp. has high-graded its Turin Prospect and increased its ownership percentage in all of the Turin Project lands to 45% while at the same time relinquishing its interest in 480 acres previously held. Canadian Quantum now has a 45% WI in a total of 800 prospective acres at Turin.
- Cancen Oil Canada Inc. entered into an asset purchase agreement with Duniece Bros Trucking Ltd. of Athabasca, Alberta. Under the agreement, Cancen has agreed to purchase a disposal well and...
Nov 23, 2011