PetroChina has acquired half of EnCana's interest in the Cutbank Ridge unconventional gas play in British Columbia and Alberta. PetroChina will pay US$5.4 billion to acquire 635,000 net acres in the play, 255 Mmcfe/d production, plus a share in 700 Mmcf/d of processing capacity, 3,400 km of pipelines, and a natural gas storage facility. PetroChina has the option to spread the cost of the acquisition over time.
The Cutbank play includes some liquids but is predominantly gas-weighted.
This deal adds to the flow of capital from the IOCs (both established and emerging) and NOCs into unconventional North American gas plays.
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