June 24 Companies eager to capitalize on the
U.S. shale gas revolution are buying up firms which have deeds
to land with access to reserves.
Despite rumblings of environmental concerns, cheap and
plentiful gas from shale is increasingly becoming a larger part
of U.S. domestic energy production. [ID:nN18229665]
Below are major shale gas sector acquisitions since 2009:
-- India's largest listed company Reliance Industries
(RELI.BO) will invest $1.36 billion in the U.S. shale gas
assets of Pioneer Natural Resources (PXD.N). [ID:nSGE65N06C]
-- British gas producer BG Group BG.L said it would pay
$950 million to buy a 50 percent interest in shale gas assets
in Appalachia from EXCO Resources (XCO.N).
-- Canada's Progress Energy Resources Corp (PRQ.TO) agreed
to buy certain northeast British Columbia Foothills assets for
about C$390 million ($366.2 million) from Suncor Energy
-- Exxon Mobil Corp (XOM.N) announced its plan to buy XTO
Energy Inc XTO.N for about $30 billion in stock. XTO's
resource base is the equivalent of 45 trillion cubic feet of
gas and includes shale gas, tight gas, coal bed methane and
shale oil. [ID:nN14126206]
-- Ultra Petroleum Corp UPL.N 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
-- Denbury Resources Inc (DNR.N) 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 (XCO.N) $1.3 billion for an interest in shale gas
resources in Texas and Louisiana. [ID:nLU618520]
The companies said each would own 50 percent 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 percent of Denbury
Resources Inc's (DNR.N) natural gas assets for $270 million.
-- Independent oil and gas company Quicksilver Resources
Inc KWK.N agreed a joint venture with Italian energy giant
Eni (ENI.MI) to develop its Barnett shale properties in Texas.
As part of the deal, Eni agreed to buy a 27.5 percent 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 Inc'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 Ltd PBG.TO, which combined its own conventional oil
assets with TriStar to create a new company called PetroBakken
Energy Ltd PBN.TO.
(Writing by Jeanine Prezioso; New York Editorial, Bangalore
Editorial Reference Unit; Editing by Lisa Shumaker)