Duvernay announced July 14th, that it has entered into an agreement with Shell Canada, Royal Dutch Shell’s Canadian arm, by which Shell will acquire all issued and outstanding shares of Duvernay in an allcash
takeover valued at approximately $5.9 billion ($83 per Duvernay share, a 42% premium to Friday’s closing price). This offer is subject to the acceptance of at least 66.67% of Duvernay shareholders after the board voted unanimously to recommend the offer. Duvernay also agreed to pay Shell a non-completion fee of $120 million if the proposed transaction is not completed.
According to Canaccord Adams Oil & Gas Analyst Richard Wyman, assuming current production of about 27,000 boe/d (Canaccord Adams’ 2008 production estimate), Shell’s offer is about $207,000 per flowing barrel compared to Duvernay’s valuation of $155,000 per flowing barrel on Friday.
This large premium highlights the strong valuation a company would
receive for being opportunity rich compared to Shell who is cash rich and opportunity poor. Duvernay has 1,400 multi-zone locations in Alberta, 350 Doig locations in B.C. and between 350 to 700 Montney locations in B.C.
June Qatar and Royal Dutch Shell , together with PetroChina , plan to build a refining and petrochemical complex in China, the companies said.
The deal, signed on Monday June 23 in Doha during Chinese Vice President Xi Jinping's state visit, offers Qatar its first foray into the lucrative Chinese fuel market, following other Middle East countries, Saudi Arabia and Kuwait.
The agreement came just two months after a huge gas supply pact reached among the same parties under which China will import 3 million tonnes of liquefied natural gas a year from Qatar and its partner Shell for 25 years from 2011.
Monday's letter of intent did not give an investment figure, nor the location or timeframe of the proposed multi-billion-dollar venture.
PetroChina, Asia's top oil and gas producer and China's second-largest refinery, will own 51 percent in the proposed joint venture, while Shell and Qatar will each own 24.5 percent
A possible merger with fellow British petrol giant BP is in the works as of July 2007. There seems to be strong internal support for the merger on both sides of the table; even if the merger falls through this time, it will likely be revived. If (when?) the merger does eventually happen, you'll have a huge oil giant worth apprx. US$ 500 billion on your hands. Combined Shell/BP foreign investments, assets, etc. could give the new company a huge edge over all other competitors, including current monolith Exxon Mobil (XOM).Which in the eyes of the investment world the RDSA share price could be in the region well and above the $ 200 usd mark this side of the fall..