The Banking and Strategy Initiative

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More Loonies from Asia, Mitsubishi steps in | Deal Insight

The Canadian Encana Corp sold its Cutbank ridge assets, 40% stake in the 405k net Acres of British Columbia shale fields to Japanese Mitsubishi, even as a similar deal six months ago soured a year after Sinopec’s $4.65 bln in the Oil sands and now the pipeline project rejected by Obama. Sinopec (Petrochina had attempted a buy of 0.255 TCF and 635k gross acreage (257,000 HA) with reserves of 1 TCF

Meanwhile, Canadians are looking at adding export facilities to British Columbia and the Japanese have it , at less than half the price bid by PetroChina at $2.9 bln , the Loonies having caught up with the Dollar since the 2009 run

With the deal cash safely due in 5 years, Mitsubishi pays only $1.45 bln up front. The shale fields have 900 bln TCF of unproven reserves.

Meanwhile PetroChina picked up another stake in Devon Energy for $2.2 bln in the new year while Chesapeake sold a stake to Total of France in the Ohio shale for $2.32 bln, deals still coming fast and thick though production from Shale incl $12 bln investments by BHP yet not making an impact on the price with EIA inventory reductions holding down prices instead of heightened production

Sinopec will pay $1.6 bln in drilling costs in net 400k Acres ( 33% of 1.2 mln acres, in ‘Bama Missisipi, Colorado and Michigan Basins. Sinopec (Petrochina) was also able 20% in Groundbirch in Canada for 20% stake from Royal Dutch Shell valued at a $1 bln

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