Deal Insight
Progress Energy and PETRONAS create strategic partnership in the Montney Shale
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Report summary
Progress Energy has announced a strategic partnership with PETRONAS to develop three of its Montney Shale assets in northeast British Columbia. PETRONAS will acquire a 50% interest in Progress' Altares, Lily and Katha properties for Cdn$1.1 billion (US$1.1 billion), made up of an initial cash payment and a subsequent cost carry. In addition, the two companies will form a JV to assess the feasibility of an LNG export terminal on the west coast of British Columbia, joining a growing ...
Table of contents
- Executive summary
- Transaction details
- Upstream assets
-
Deal analysis
- Attractive returns achievable, but heavily dependent on recovery factors
- Discount rate remains a key variable
- Metrics stack up well with recent transactions
- Canadian M&A - the Asian influx
- Upsides and risks
-
Strategic rationale
- PETRONAS
- Progress Energy
- Oil & gas pricing and assumptions
Tables and charts
This report includes 6 images and tables including:
- Acquired acreage, relative to recent Montney deals
- Wood Mackenzie forecast - Japan spot price vs. Henry Hub
- Oil & gas pricing and assumptions: Table 1
- Oil & gas pricing and assumptions: Table 2
- Valuation sensitivity to reserve modelling scenarios and discount rate
- Deal analysis: Table 1
What's included
This report contains:
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