Shell Canada takeover of Duvernay approved

The Canadian government has approved Shell Canada Ltd.'s acquisition of unconventional gas producer Duvernay Oil Corp. for $5.9 billion (Can.).

Aug 22nd, 2008

Uchenna Izundu
International Editor

LONDON, Aug. 22 -- The Canadian government has approved Shell Canada Ltd.'s acquisition of unconventional gas producer Duvernay Oil Corp. for $5.9 billion (Can.). The deal adds to Shell's portfolio acreage in the Western Canadian Sedimentary Basin.

Wholly owned Shell Canada subsidiary BRS Gas Corp. acquired 97.7% of Duvernay's common shares and will pay for them on or before Aug. 27. BRS Gas offered $83/share for Duvernay in July (OGJ Online, July 14, 2008).

Duvernay has 25,000 boe/d of production, predominantly gas. It plans to increase production to 70,000 boe/d by 2012. Duvernay owns and controls the gas processing and delivery infrastructure in both large project areas.

BRS Gas will buy the remaining Duvernay common shares that were not deposited to the offer. It will then delist Duvernay's common shares from the Toronto Stock Exchange and apply to securities regulatory authorities to stop issuing them, Shell Canada said.

Contact Uchenna Izundu at uchennai@pennwell.com.

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