Suncor announced plans to acquire Petro-Canada for close to $15 billion in stock. Both companies have reduced expected 2009 captial spending signficantly admist lower crude prices and weak energy demand. This merger would allow the two companies to save close to $1.3 billion in annual costs through reduced capital spending and job cuts.
Close to -60% when no fundamental reason supports this price. A great value play.
Petro-Canada increased earnings and production, and advanced growth projects in 2007.
Petro-Canada reported that exploration drilling had tapped potential new offshore fields in both the North Sea and Trinidad and Tobago. The company, Canada's No. 4 integrated oil exploration and refining firm, said its Cassra well, drilled in 430 meters (1,378 feet) of water north of the Caribbean island of Tobago and found a natural gas field that Petro-Canada said could contain between 600 million cubic feet and 1.3 trillion cubic feet of gas. In the North Sea, a new well drilled in 89 meters (292 feet) of water in the Moray Firth area offshore Scotland and found two separate oil-bearing zones that produced 200 barrels of light oil a day during testing.
