Shell gets Canadian approval for Duvernay purchase
Shell said the minister of industry and the Competition Bureau had approved the transaction, clearing the way for the purchase.
“Shell Canada has now received all necessary Canadian regulatory approvals to proceed with the acquisition of Duvernay,” the company said in a release.
Last month, Shell made a cash offer for Duvernay of C$83 a share, a 42 percent premium over what the stock had commanded on Toronto Stock Exchange.
Duvernay has 1,800 square kilometers (450,000 acres) of land holdings in two provinces, particularly in the prized Montney region in the northeast of British Columbia and in Alberta’s Deep Basin, areas Shell hopes to add to its portfolio of tight gas interests.
Tight gas is gas contained in difficult reservoirs, where extraction was once considered too costly. However, high gas prices and advances in technology have led to a surge of investment in such reserves, which are sometimes massive, and Duvernay has one of the best holdings of the resource among mid-sized Canadian companies.
Shell’s offer closes on August 22.
($1=$1.06 Canadian)
(Reporting by Scott Haggett; editing by Rob Wilson)
© Thomson Reuters 2008 All rights reserved.
http://ca.reuters.com/article/domesticNews/idCAN1931344620080819
This website and sisters royaldutchshellgroup.com, shellnazihistory.com, royaldutchshell.website, johndonovan.website, and shellnews.net, are owned by John Donovan. There is also a Wikipedia segment.
EBOOK TITLE: “SIR HENRI DETERDING AND THE NAZI HISTORY OF ROYAL DUTCH SHELL” – AVAILABLE ON AMAZON
EBOOK TITLE: “JOHN DONOVAN, SHELL’S NIGHTMARE: MY EPIC FEUD WITH THE UNSCRUPULOUS OIL GIANT ROYAL DUTCH SHELL” – AVAILABLE ON AMAZON.
EBOOK TITLE: “TOXIC FACTS ABOUT SHELL REMOVED FROM WIKIPEDIA: HOW SHELL BECAME THE MOST HATED BRAND IN THE WORLD” – AVAILABLE ON AMAZON.
