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7 Pages

Glencore Xstrata acquires Chad-focused Caracal Energy for US$1.6 billion


Glencore Xstrata acquires Chad-focused Caracal Energy for US$1.6 billion

Report summary

Caracal's asset base includes the onstream Mangara-Badila development, with estimated gross reserves of 110 mmbbl, and production of 16,500 b/d in 2014. Glencore already holds 35% of this development, and will increase its stake to 85%. The portfolio also extends over around 26,000km2 of exploration acreage. We value Caracal's commercial assets at US$1.1 billion, against a net consideration of US$1.6 billion. Our valuation excludes the Krim and Kibea fields, which we classify as technical.

What's included?

This report includes 1 file(s)

  • Glencore Xstrata acquires Chad-focused Caracal Energy for US$1.6 billion PDF - 1023.06 KB 7 Pages, 6 Tables, 2 Figures

Description

The upstream oil and gas industry conducts activities against a backdrop of growing energy and environmental challenges. Political instabilities, international conflicts and government and environmental regulation have all impacted the production process.

This has forced companies to re-examine their corporate strategy, moving away from high-risk exploratory drilling to lower-risk exploration in mature basins as they search for increased returns.

This Upstream Oil and Gas Deal Insight report provides an in-depth analysis of this deal. You will also find information about upstream assets and the strategic rationale behind the deal.

For investors and businesses, this deal insight report provides an understanding of the effect this deal will have on the market, including oil and gas pricing and assumptions. Use it to keep up to date with deal announcements, gain expert insights and analyse potential developments that might affect your strategy.

Wood Mackenzie goes beyond company-reported data and announcements to give you an independent and informed view. Our unique valuation metrics are underpinned by our deep understanding of upstream assets and companies. We help you objectively benchmark and evaluate asset and corporate deals so you can compare deal economics around the world.

  • Executive summary
  • Transaction details
  • Upstream assets
    • Onstream
    • Discoveries
    • Exploration
  • Deal analysis
  • Upsides and risks
  • Strategic rationale
    • Caracal
    • Glencore Xstrata
  • Oil & gas pricing and assumptions

In this report there are 8 tables or charts, including:

  • Executive summary
    • Executive summary: Table 1
  • Transaction details
  • Upstream assets
    • Acquired blocks and Glencore portfolio post-deal
    • Upstream assets: Table 1
  • Deal analysis
    • Deal analysis: Table 1
    • Deal analysis: Table 2
  • Upsides and risks
  • Strategic rationale
    • Glencore Xstrata and Caracal combined production forecast (entitlement basis)
  • Oil & gas pricing and assumptions
    • Oil & gas pricing and assumptions: Table 1
    • Oil & gas pricing and assumptions: Table 2
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