According to the Wall Street Journal, there is increasing interest in shale assets across the US which has lead to a number of companies putting themselves up for sale.
Three most notable transactions include; Chief Oil & Gas, a Dallas-based company active in the Marcellus Shale. Estimated value of the transaction is $3.0 billion.; Talon Oil & Gas LLC, with operations in three Texas regions and could sell for between $1.0 and $1.5 billion; and, Anschutz Exploration Corp, which focuses on the Bakken shale which could sell for $1.0 billion.
Demand is on the increase, but long term the acquisition of shale assets will prove to be profitable as shale gas plays a leading role in the North American (and international) energy mix. Analysts and bankers agree… according to the WSJ article:
Bankers and analysts expect the trend to continue, although assets in older shale regions have become less attractive because of low gas prices. Tracts in the Marcellus are still fairly inexpensive, so a purchase there could still be a good investment for a company on the lookout for natural-gas assets.
In BC, interest lies in the value shale gas assets represent not only to North American energy needs, but also to Asia due to proximity. The Asian market is growing in importance as the US turns more towards domestic natural gas resources.
Wall Street Journal: Three Shale-Gas Drillers Up for Sale
