Tuesday, May 24, 2011

US/Canada unconventional assets worth ~$14 billion available on market. Marcellus Shale leads the play.

The unconventional marketplace is being driven by motivated buyers (majors, internationals like KNOC, Marubeni, CNOOC, BHP, etc.,) and opportunistic sellers (Anadarko, Chesapeake, EnCana, Talisman, etc.,). Unconventional transactions dominated the upstream asset transactions in Q1-2011, nearly 35% of the total upstream value. PetroChina’s C$5.4 billion for a 50% interest in Cutbank Ridge assets in the Montney shale play from EnCana and BHP Billiton’s $4.75 billion for acquisition of interest in Fayetteville shale play from Chesapeake were the two major gas weighted shale deals in Q1-2011. However, number of transactions were more towards oil weighted Bakken and Eagle Ford plays. The following two tables show the significant unconventional deals of Q1-2011 in US/Canada.
In United States...

In Canada...

Unconventional assets worth $14 billion up for sale

A total of $13,671 million worth of shale oil/gas assets are available for sale in the United States and Canada. The Marcellus shale gas assets top the sale activity and account for 44% of the total value. The key and the emerging shale plays and the assets put up for sale in those areas are detailed below-

Key US shale plays:
Bakken Shale, hybrid shale system with mainly oil production, also exploiting underlying Three Forks tight sands formation

Marcellus Shale in Appalachia, covering multiple states with Pennsylvania as main state, NE-part dry, SW-part with wet gas area

Barnett Shale in Texas, dry and wet gas zones, combo area with oil/condensate as well
Fayetteville Shale in Arkansas, mainly dry gas
Haynesville Shale on the Louisiana-Texas border, mainly dry gas

Emerging plays:
Eagle Ford in South Texas, oil and wet gas in addition to dry gas

Niobrara in the Rockies, mostly oil

Utica in eastern Ohio and western Pennsylvani may be oil prone and future target by companies

• Avalon in the Permian, mostly oil
• Canadian plays, notably Montney and Horn River in British Columbia; and Oilsands in Alberta.

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