Canadian energy news brief: Apache sells out to Paramount, Nexen charged in 2015 pipeline spill
Energy news snapshots from across the country
Paramount Resources has agreed to buy the Canadian assets of Apache Corp. and has announced the company will merge with Trilogy Energy. The new company will become a Montney, Duvernay and Deep Basin focused intermediate exploration and production company, generating operational synergies, optimize cost structures, offer financial flexibility and provide economies of scale.
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Combined Q4 2017 production expected to exceed 90,000 Boe/d, including approximately 35% liquids, and proved plus probable reserves of 600 MMBoe.
- A total land position of approximately 2.7 million net acres with a number of top-tier Montney and Duvernay resource development plays which will provide the Company with considerable capital allocation flexibility
Nexen charged for July 2015 Long Lake pipeline spill
The Alberta Energy Regulator (AER) has laid charges against Nexen related to a pipeline spill in July 2015.
The five charges under the Environmental Protection and Enhancement Act and the Public Lands Act come after the company reported a spill to the AER at the company’s Long Lake in situ oil sands facility approximately 36 km southeast of Fort McMurray.
“AER staff responded immediately to the pipeline spill,” said Martin Foy, vice president of Environment and Operational Performance. “Since then we’ve been gathering and reviewing the evidence to determine the cause of this incident and whether the company complied with AER requirements.”
The company reported that the spill released approximately 5000 cubic metres of emulsion (a mixture of crude bitumen and produced water). The spill was estimated to have affected an area of about 21 900 square metres.
“Producing oil or gas in Alberta comes with a responsibility to follow all requirements to protect the public and environment,” said AER president and CEO Jim Ellis. “When we believe that the rules are not followed, we have a variety of tools, including laying charges that we can and do use in an attempt to ensure that potential offenders are held accountable.”
The first court appearance is scheduled for August 16, 2017, in Fort McMurray.
The Alberta Energy Regulator (AER) has laid charges against Nexen related to a pipeline spill in July 2015.
The five charges under the Environmental Protection and Enhancement Act and the Public Lands Act come after the company reported a spill to the AER at the company’s Long Lake in situ oil sands facility approximately 36 km southeast of Fort McMurray.
“AER staff responded immediately to the pipeline spill,” said Martin Foy, vice president of Environment and Operational Performance. “Since then we’ve been gathering and reviewing the evidence to determine the cause of this incident and whether the company complied with AER requirements.”
The company reported that the spill released approximately 5000 cubic metres of emulsion (a mixture of crude bitumen and produced water). The spill was estimated to have affected an area of about 21 900 square metres.
“Producing oil or gas in Alberta comes with a responsibility to follow all requirements to protect the public and environment,” said AER president and CEO Jim Ellis. “When we believe that the rules are not followed, we have a variety of tools, including laying charges that we can and do use in an attempt to ensure that potential offenders are held accountable.”
The first court appearance is scheduled for August 16, 2017, in Fort McMurray.
Energy drives Canadian mergers and acquisitions activity
Canadian mergers and acquisitions rose about 13% to C$120.5 billion in the first half of 2017, according to Thomson Reuters.
Cenovus Energy Inc’s $17 billion acquisition of ConocoPhillips oil sands and natural gas assets and Shell’s (RDSa.L) sale of most of its Canadian oil sands assets for $8.5 billion are the two biggest energy deals of 2017.
“The large international majors are looking to delever their balance sheet and sell non-core assets,” said Peter Buzzi, co-head of Canadian M&A at RBC told Reuters. “And for many of them, it appears Canada falls into that non-core category.”
“The IPO pipeline looks strong,” said Benoit Lauzé, head of equity capital markets at CIBC. “There would be very significant appetite for good technology names.”
Kinder Morgan Canada’s $1.75 billion IPO and Canada Goose Holdings Inc’s offering were some of the highlights in the first half.
But overall, the equity capital activity in the energy sector could slow because of choppiness in oil prices, bankers told Reuters.
“Investors have been generally taking a risk-off approach and we’re seeing limited conviction that oil prices are going to be high in the near term,” said Kirby Gavelin, head of equity capital markets at RBC.
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