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PetroChina joins Encana in the Duvernay for US$2.2 billion

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13 December 2012

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 ...

Table of contents

  • Executive summary
  • Transaction details
  • Upstream assets
    • 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
    • Upside
    • Risks
    • PetroChina
    • Encana
    • Historic deals
  • Oil & gas pricing and assumptions

Tables and charts

This report includes 5 images and tables including:

  • Location of Encana Duvernay assets
  • Deal analysis: Table 1
  • Oil & gas pricing and assumptions: Table 1
  • Oil & gas pricing and assumptions: Table 2
  • Deal valuation variance with discount rate and well cost (US$ million)

What's included

This report contains:

  • Document

    PetroChina joins Encana in the Duvernay for US$2.2 billion

    PDF 1.77 MB