Acquired co. with Montney shale holdings, gaining 450,000 net acres, 25,000 BOE/d, 96 MMBOE proved (148.2 BOE 2P).
Shell Canada Ltd., a subsidiary of integrated oil company Royal Dutch Shell, The Hague, The Netherlands, (NYSE: RDS-B) and via subsidiary BRS Gas Corp., has closed its acquisition of Alberta-based E&P Duvernay Oil Corp. (Toronto: DDV) with holdings in the Montney shale of Alberta for a deal value of approximately C$5.9 billion in cash and debt assumption. Shell paid C$83 per Duvernay share, a 36% premium over the 30-day weighted average at the time of the offer. Duvernay holds 450,000 net acres in northwestern Alberta and northeastern British Columbia, including in two large gas projects at Sunset-Groundbirch in British Columbia and the Alberta Deep Basin. Production is more than 25,000 barrels of oil equivalent per day, mostly gas, with plans to increase to 70,000 barrels per day by 2012. Proved reserves are 96 million barrels of oil equivalent (148.2 barrels proved plus probable). Shell chief executive Jeroen van der Veer says the Duvernay assets could become a valuable part of the Shell portfolio by adding value through technology and scale. "The combination of Duvernay's acreage with Shell's proven operating experience and financing capabilities make this transaction attractive to all shareholders." Shell has tight gas production of some 80,000 barrels equivalent per day in North America, including in Western Canada, Wyoming, South Texas and positions in the Haynesville shale in Louisiana and Texas. Peters & Co. Ltd. was advisor to Duvernay and provided a fairness opinion.