Low prices don't mean oil sands deals won't get doneThere is precedent for an upswing in oil sands deal activity in a low price environment. In late 2008 and early 2009 with oil prices reeling from the financial crisis at $40-$50/bbl, a series of deals were struck for early-stage oil sands projects.Sinopec acquired an incremental 10% stake in the undeveloped Northern Lights project from Total. Nexen bought an incremental 15% WI in the Long Lake SAGD development from partner Opti Canada for $735 million just as Phase 1 production was...
Mar 20, 2015
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
Warburg Pincus & Kayne Anderson invest in West Valley EnergyPrivately held, Calgary-based West Valley Energy Corp. has been formed with financial backing from private-equity firm Warburg Pincus and energy-focused PE firm Kayne Anderson Energy Funds to develop resource plays in Alberta. The amount of the investment of the two firms in West Valley was not disclosed.West Valley will be run by CEO Amar Pandila, COO Shaun James and CFO Travis Beatty. Pandila was formerly the head of corporate development at Monterey Corp., James the founder and head of...
May 09, 2012
Structural themes driving M&A activity this yearCanada's M&A market is likely to see more aggressive antitrust regulation, increased use of income trusts to invest tax-free in foreign assets, and fierce debate over the use of "poison pills" by company boards to prevent takeover bids, a leading business law firm based in Calgary argues. A recent report by the firm, Stikeman Elliott LLP, outlines these and other legal and regulatory trends expected to affect M&A activity this year.Foreign investment is likely to continue,...
Mar 13, 2012
CNOOC hikes output and spending targets in 2012China offshore producer CNOOC Ltd's total capex in 2012 is expected to reach $9.3-$11 billion, up from last year's $8.77 billion as it accelerates development of deepwater wells and unconventional resources. The Hong Kong-listed company is aiming to produce 330-340 MMboe this year, 2.4% higher compared with its estimated net output of 331-332 MMboe in 2011.
CNOOC said the planned output hike would be backed by new projects. During the year, four new projects in offshore China will be...
Jan 31, 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
Nexen partners with Japan's Inpex and CNOOCNexen reached an agreement to create a partnership with a consortium led by Inpex Corp. of Japan to develop shale gas lands in the Horn River, Cordova and Liard Basins in NE British Columbia. Nexen will sell 40% WI in these assets for C$700 million, 50% up front and 50% in a drilling carry. Nexen will remain as the operator.
After closing, the partnership intends to proceed with the appraisal and development of the resource, depending on economic conditions. The 18-well pad currently drilling...
Dec 16, 2011
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
Lower rated high-yield debt fraying, Fitch findsFitch Ratings issued a report showing Dynegy's November 7 Chapter 11 filing pushed the 2011 YTD high-yield default rate to 1.2% (vs. 1.1% YTD in November 2010). Fitch points out that nearly all of this year's defaults stemmed from bonds rated "CCC" or lower, representing a pool of $205 billion or 19% of the total market. For that group, Fitch projects a 4.6% 2011 default rate. A quarter of the CCC group is trading at or below 80% of par and for those issuances the default rate rises to 28%....
Dec 09, 2011
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