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6 Pages

PetroChina joins Encana in the Duvernay for US$2.2 billion


PetroChina joins Encana in the Duvernay for US$2.2 billion

Report summary

The emerging Duvernay play has received another vote of confidence with the formation of a joint venture between PetroChina and Encana. PetroChina will pay Cdn$2.2 billion (US$2.2 billion), including a Cdn$1-billion cost carry, for a 49.9% stake in Encana's Duvernay assets. The Duvernay is an early-stage liquid-rich shale gas play and its ultimate potential is still unknown. Activity has so far been limited to delineation and test drilling. Its economics are challenged by high well ...

What's included?

This report includes 1 file(s)

  • PetroChina joins Encana in the Duvernay for US$2.2 billion PDF - 1.77 MB 6 Pages, 3 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
  • Deal analysis
    • Well cost reduction will drive up value
    • Liquid content critical to maintain value
    • LNG export may be the route to maximise returns
    • Duvernay acreage value reaches new highs
  • Upsides and risks
    • Upside
    • Risks
  • Strategic rationale
    • PetroChina
    • Encana
    • Historic deals
  • Oil & gas pricing and assumptions

In this report there are 5 tables or charts, including:

  • Executive summary
  • Transaction details
  • Upstream assets
    • Location of Encana Duvernay assets
  • Deal analysis
    • Deal analysis: Table 1
    • Deal valuation variance with discount rate and well cost (US$ million)
  • Upsides and risks
  • Strategic rationale
  • Oil & gas pricing and assumptions
    • Oil & gas pricing and assumptions: Table 1
    • Oil & gas pricing and assumptions: Table 2
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