Counter to claims that lack of asset supply increased competition for acquisitions in Canada, there was a rapid shift from a seller's market to a buyer's market in the fourth quarter, according to Sayer Energy Advisors, a Calgary-based M&A advisory firm. Both Husky Oil Operations Ltd. and Talisman Energy Inc. have assets for sale, representing daily combined production of approximately 23,000 barrels of oil equivalent, and Dominion Resources Inc. intends to sell its E&P business, including some Canadian assets. There were assets involving 70,000 to 80,000 barrels equivalent of daily production for sale approaching year-end 2006, and many other divestments unannounced, bringing the total to more than 100,000 barrels equivalent per day, according to Sayer associate Ryan Ferguson Young. Higher debt, new funding challenges and a proposed new Canadian trust tax regime are forcing producers to sell assets or consider being acquired. Some multinational companies may also add supply to the market. For more on this, see the January issue of Oil and Gas Investor. For a subscription, call 713-260-6441.
Recommended Reading
Seatrium Awarded Contract for FPSO Bound for Guyana’s Stabroek
2024-05-17 - The topsides fabrication and integration contract will be for the FPSO Jaguar, bound for the Whiptail Field in the Stabroek block offshore Guyana for Exxon Mobil.
Third Suriname Find for Petronas, Exxon Could Support 100,000 bbl/d FPSO
2024-05-17 - A recent find offshore Suriname in Block 52 by Petronas and Exxon Mobil could support a 100,000 bbl/d FPSO development, according to Wood Mackenzie.
US Drillers Add Oil, Gas Rigs for First Time in Four Weeks: Baker Hughes
2024-05-17 - The oil and gas rig count rose by one to 604 in the week to May 17.
BPX Looks to Ramp US Production Over 60% by 2030
2024-05-16 - BPX Energy is looking to boost its U.S. production over 60% by 2030 as it considers bringing online a fourth processing facility in the Permian by mid-year 2025, Clark Edwards, the company’s vice president of development, said during SUPER DUG in Fort Worth.
Empire Petroleum’s Williston Drilling Program Identifies New Zones
2024-05-16 - Empire Petroleum provided updates on its Williston Basin development drilling program in its first quarter 2024 earnings results.