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December 16, 2009

Exxon to Buy XTO for $31 Billion in Bet on U.S. Gas
Exxon Mobil Corp., the biggest U.S. oil company, agreed to buy XTO Energy Inc. for $31 billion in a bet that U.S. emissions restrictions will spur increased demand for natural gas. Owners of Fort Worth, Texas-based XTO will get 0.7098 share of Exxon for each of their shares, the companies said today in a statement. The transaction, the largest energy acquisition since 2006 and Irving, Texas-based Exxon's biggest takeover since the purchase of Mobil Corp. in 1999, values XTO at $51.69 a share, 25 percent higher than its last closing price. "This says that corporate M&A is alive and well in the exploration and production sector," said Curtis Trimble, an analyst at Natixis Bleichroeder Inc. in Houston. "It also says that Exxon isn't shy about stepping up their exposure to the natural-gas market. Almost certainly, we will see some more follow-the-leader type transactions." Exxon, which also will assume $10 billion in debt, will get the largest producer of U.S. natural gas. Demand for the fuel will grow as U.S. carbon legislation prompts power producers to switch from coal, Kenneth Cohen, Exxon's vice president for government affairs, said in a Dec. 7 interview. XTO rose $6.37, or 15 percent, to $47.86 in New York Stock Exchange composite trading. The stock had climbed 18 percent this year before today. Exxon fell $3.14, or 4.3 percent, to $69.69.

Acquisition Outlook

The purchase is scheduled to close in the second quarter, the companies said. JPMorgan Chase & Co. and Davis Polk & Wardwell are advising Exxon. Barclays Plc, Jefferies & Co. and Skadden Arps Slate Meagher & Flom LLP are advising XTO. "In terms of which deal gets triggered next, it's kind of a race to the altar," said Ted Harper, who helps manage $6.1 billion, including 137,550 XTO shares and 932,268 Exxon shares, at Frost Investment Advisors in Houston. Acquirers will probably be major oil companies that are having a tough time increasing production, such as Europe's Royal Dutch Shell Plc and Total SA, Harper said. Potential takeover targets would include independent exploration and production companies like Ultra Petroleum Corp., EnCana Corp., and Range Resources Corp., he said. Other potential targets could be Anadarko Petroleum Corp., EOG Resources Inc. and Devon Energy Corp., said Philip Weiss, an analyst at Argus Research Corp. in New York.

 Reserves Needed

An index of independent oil and gas producers in the Standard & Poor's 500 climbed 6.4 percent, the biggest gain since May 6. Other than XTO, the biggest advancers were Fort Worth-based Range Resources and Southwestern Energy Co. XTO's output jumped 23 percent to the equivalent of 2.95 billion cubic feet of gas a day after a $4.2 billion acquisition spree last year that included Hunt Petroleum Corp. The company reported proved reserves equivalent to almost 13.9 trillion cubic feet of gas at the end of last year. Including reserves not yet proved, XTO has an estimated 45 trillion cubic feet of gas equivalent, according to today's statement. "There's very little in the way of really good reserves out there," said Stephen Leeb, who manages $175 million as president of Leeb Capital Management in New York. "If you want reserves you can count on, you really have to buy domestic reserves, or reserves in countries that are, you know, trustworthy, and XTO has a lot of wonderful domestic reserves, especially, I think, in the gas area." Including all reserves, not just proved, Exxon is paying $5.47 per barrel of oil equivalent, Chief Executive Officer Rex Tillerson told reporters today on a conference call.

 'Elevated' Price

Exxon is paying $13.42 per barrel of oil equivalent in proved reserves. When Oklahoma City-based SandRidge Energy Inc. agreed last month to buy $800 million in assets from Forest Oil Corp., the price was about $10 per barrel. XTO's price may be "elevated" by the quality of the company's assets, according to a research note by analysts Ben Dell and Neil McMahon of Sanford C. Bernstein & Co. in New York. XTO extracts gas from the Barnett Shale region of Texas, the largest so-called unconventional gas field in the U.S., and has started output in the Bakken Shale in North Dakota, where oil is trapped between shale beds in rock resembling concrete. The company is doubling its drilling in the Marcellus Shale, a gas-bearing formation that stretches through parts of Pennsylvania, New York and West Virginia. Shale developments, where rock formations are fractured and injected with water, sand and chemicals to release trapped gas, drove a jump in U.S. gas production last year. Environmental Issue Concerns that shale-gas projects may contaminate groundwater led to an effort in Congress to restrict drilling. Bills filed in June in the U.S. Senate and House would require producers to get a permit from the Environmental Protection Agency for each well drilled. XTO's headquarters will be the center of Exxon's unconventional oil and gas unit, which will be based in Fort Worth, Tillerson, 57, said on the conference call. The company will exploit shale formations globally, he said. Additional scale is needed to develop shale formations, XTO Chairman Bob Simpson, 61, said on the call. Exxon amassed more than $31 billion in cash as of the end of last year and almost $200 billion of its own shares purchased through buybacks. Prior to today's announcement, the company had used its cash stockpile on its own capital projects and asset purchases. The Mobil deal was the company's last major takeover.

Exxon's War Chest

 "They've been sitting on a huge amount of cash for the last several years, with speculation mounting as to what they will do," said Gianna Bern, president of Brookshire Advisory & Research Inc. in Flossmoor, Illinois. "Acquisitions that increase their production capabilities will be viewed fairly positively." The Exxon-XTO deal is the largest U.S. energy takeover since Houston-based ConocoPhillips acquired Burlington Resources Inc., also primarily a gas producer, for $36 billion in 2006. ConocoPhillips recorded $34 billion in fourth-quarter 2008 costs to reflect a drop in the value of acquired assets, including the Burlington gas properties. U.S. gas futures tumbled to a seven-year low in September as the recession eroded demand for the heating and power-plant fuel. Global energy demand will rise 30 percent by 2030, led by gains in use of gas, Exxon Senior Vice President Andrew P. Swiger said last month in a presentation in New York. Gas use will increase twice as fast as demand for crude oil and will surpass coal as the second-largest energy source, he said..

 

  November 23, 2009

Top level CUCBM Deleation attends Joint Project Steering Committee Meeting with Petromin in Vancouver
On 18 November 2009, a top level CUCBM delegation attended Petromin's Vancouver offices and held a Joint Project Steering Committee (JPSC) meeting with representatives from Petromin, Enviro-Energy and the Alberta Research Council to discuss future plans of the Deep Un-mineable Coal CO2 Sequestration and ECBM Project. In Support of China's vision to ensure the development of a sustainable low carbon pathway, CUCBM emphasized the importance and high priority that their Government is giving the Pilot Project as it directly relates to both their environmental and clean energy future planning. CUCBM was represented by Mr.Feng Sanli, president; Dr. Ye Jianping, assistant to president; Ms. Yang Yi, director of Foreign Affairs; and Mr. Hu Bin, engineer, Department of Science and Technology Management. The CUCBM delegation also attended the Unconventional Gas Conference organized by Canadian Society of Unconventional Gas in Calgary, Canada from 18 to 20 November 2009, before returning to China.


From left to right: Ye Jianping(assistant to president), Mike Suk(VP of Petromin), Feng Sanli(president CUCBM), Sam Wong(senior research engineer at ARC), Yang Yi(director of Foreign Affairs), Hu Bin(engineer)
 



 

 September 14, 2009

Petromin ranked 24th of the Top 100 Fastest Growing Companies in BC
Petromin Resorces Ltd enjoyed a 704 per cent increase in revenue betwee 2004 and 2008, earning it a top spot in Business in Vancouver's Top 100 Fastest-Growing Companies list in 2009.

Mr. Suk, Vice-President of Petromin, accepted the BIV Award at a ceremony in Vancouver, British Columbia in October. The BIV Top 100 Award is awarded according to revenue growth over the past four years. 

 

 October 22, 2008

Petromin to attend the Carbon Capture and Storage Conference in Abu Dhabi
Petromin is pleased to announce that it will be attending the Carbon Capture and Storage Conference in Abu Dhabi from October 28-29, 2008.  This conference brings together key experts in the field of CCS and will address the opportunities and necessity for successful CO2 storage.  Various global CCS projects will be showcased.
  

General Event Info

 

What:

Carbon Capture and Storage Conference

 

When:

October 28-29, 2008

 

Where:

Crowne Plaze
Hamdan St. P.O. BOX 3541
Abu Dhabi, UAE

 

 

 

 
 

October 22, 2008

Petromin to attend the CCBC 30th Anniversary Gala Dinner
Petromin is pleased to announce that it will be attending the Canada-China Business Council’s 30th Anniversary Gala Dinner in Beijing.  This banquet will be attended by a delegation of Canadian Premiers and business leaders to celebrate CCBC’s 30th anniversary as well as to celebrate the 30th anniversary of China’s open door policy. 

General Event Info

 

What:

CCBC 30th Anniversary Gala Dinnery

 

When:

November 3, 2008

 

Where:

The Kerry Centre Hotel
No 1 Guanghua Road 100020
Beijing, China

 

 

 

 

October 22, 2008

Petromin to attend the 4th Canada-China Energy and Environmental Forum
Petromin is pleased announce that it will be attending the 4th Canada-China Energy and Environmental Forum.  This forum, run by the University of Alberta, is the most important annual Canada-China energy and resource policy dialogue and debate.  It brings together members of the private sector, policy-makers, and researchers to address natural resources and energy sectors, as well as to allow for interaction between small and large players in the energy industry. 

General Event Info

 

What:

4th Canada-China Energy and Environmental Forum

 

When:

November 3-4, 2008

 

Where:

The Kerry Centre Hotel
No 1 Guanghua Road 100020
Beijing, China

 

 

 

 

June 18, 2008

Petromin to present at the 2008 China Capital Markets Conference
Petromin is pleased to announce that it will be presenting at the 2008 China Capital Markets Conference in Toronto. This event will be attended by a delegation of leading Chinese capital markets executives. The delegation – which collectively controls billions of dollars in assets – will examine in detail the impact and implications for Canadian investors in the recent regulatory changes in  China’s outbound and inbound investment frameworks.

General Event Info

 

Petromin Corporate Presentation Info

What:

2008 China Capital Markets Conference

 

Company:

Petromin Resources Ltd.

When:

June 25, 2008
10:00am – 1:30pm

 

Speaker:

Donald O. Downing
Chairman of International Advisory Board

Mike Suk
Vice President of Corporate Affairs

Where:

Toronto Hilton Hotel
145 Richmond Street West,
Toronto, Ontario  M5H 2L2

 

Time:

TBA

 

 

 

Location:

TBA

May 28, 2008

Petromin to exhibit and present at 2008 SEPAC Spring Investor Showcase
Petromin is pleased to announce that it will be presenting at the 2008 SEPAC Spring Investor Showcase. SEPAC has selected an exclusive group of companies to present at this special event. The event is a unique opportunity to listen to and personally meet the CEOs of some of Canada’s most innovative and dynamic junior oil and gag producers.

General Event Info

 

Petromin Corporate Presentation Info

What:

2008 SEPAC Spring Investor Showcase

 

Company:

Petromin Resources Ltd.

When:

May 29, 2008
10:00am – 3:30pm

 

Speaker:

Donald O. Downing
Chairman of International Advisory Board 

Where:

The Westin Calgary Hotel
320 Fourth Avenue SW
Calgarym AB T2P 2S6

 

Time:

10:15am – 12:00pm

 

 

 

Location:

Collins Barrow Calgary Room

 

TWE 2009 Liuhuanggou CBM Program
 
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Petromin commenced CBM wells in China
 
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