The GAIL JV alliance with Carrizo and the Sinopec acquisition of Daylight Energy are part of a continuing process described in our recent study, Emerging Challenges to the Global Competitor Peer Group.
GAIL has paid US$63.7 million in up-front costs and committed to another US$31.4 million in carried costs to acquire 4,040 net acres in the Eagle Ford shale. While the GAIL deal is trivial in terms of the net acreage involved, the resulting per acre cost of US23,515 paid by GAIL places this deal is in the 95th percentile of a sample of 21 transactions in 2010 and 2011.
In a move to expand the role of Canada in its future growth, Sinopec just announced a C$2.2 billion deal to acquire Daylight Energy, a Canadian resource play company with operations. Previously Sinopec acquired ConocoPhillips' interest in Syncrude.