Management of Australia’s Eureka Energy Ltd., which has acreage in the Eagle Ford Shale of South Texas, told shareholders they should reject an unsolicited offer from Aurora Oil and Gas Ltd., also of Australia and an Eagle Ford player. “The board considers the offer to be opportunistic and designed to solicit shareholders to sell their shares at a time when the company’s strategic direction and underlying potential is still emerging,” said Eureka Acting Managing Director Bill Bloking. Aurora has made an A$107 (US$111.7 million) unsolicited offer for Eureka. Aurora said the unconditional, all-cash offer represents “an attractive premium” (36.4% to Eureka’s previous closing price) and gives Eureka shareholders the opportunity to “crystallize immediate and certain value for their shares.” The acquisition would build Aurora’s “already strong presence in the Sugarkane Field, growing its portfolio of Eagle Ford interests” in line with its strategy, said Aurora CEO Jon Stewart (see Shale Daily, May 1).
Strategy
Articles from Strategy
Interior Responding to Call for Quicker Permitting
Standing in the middle of North Dakota’s booming oil/gas production fields, Interior Secretary Ken Salazar on Tuesday rolled out new federal government efforts to streamline onshore leasing and drilling processes on federal lands. Salazar made the announcement after two days of touring the Bakken Shale area, a major economic driver in what is now the nation’s third largest oil producing state.
Industry Brief
Houston-based NorTex Gas Storage Co. has changed its name to NorTex Midstream Partners LLC to reflect its new midstream energy market focus and asset acquisition strategy. “NorTex is in an active acquisition mode, committed to securing a full range of midstream assets and creating an unrivaled set of commercial solutions,” said CEO Robert Foss. NorTex owns and operates Worsham-Steed Gas Storage and Hill-Lake Gas Storage, high-deliverability, multi-cycle facilities serving the greater Dallas-Fort Worth market. These assets are in the Barnett Shale region and have multiple interconnections with several major pipelines serving energy markets from the Permian Basin at Waha to East Texas at Carthage, TX.
Obama Touts Gas, Promotes Tax Reform Plan
President Obama promoted his business tax reform proposal and once again detailed the place of natural gas in his “all-out, all-of-the-above” energy strategy during a speech at the University of Miami on Thursday.
Obama Touts Gas While Promoting Commercial Tax Reform Plan
President Obama promoted his business tax reform proposal and once again detailed the place of natural gas in his “all-out, all-of-the-above” energy strategy during a speech at the University of Miami on Thursday.
TransCanada Readies Bundle of North American Gas Projects
TransCanada Corp., Canada’s largest natural gas and oil pipeline operator, on Tuesday credited an aggressive growth strategy to build new infrastructure for driving strong returns in 4Q2011.
Interior, States Agree: No ‘Grousing’
Wyoming Gov. Matt Mead and U.S. Interior Secretary Ken Salazar Friday announced an agreed upon effort to develop and implement a land conservation strategy aimed at protecting the sage grouse and future opportunities for a robust economy throughout the West.
Interior, States Agree on Land Strategy: No ‘Grousing’
Wyoming Gov. Matt Mead and U.S. Interior Secretary Ken Salazar Friday announced an agreed upon effort to develop and implement a land conservation strategy aimed at protecting the sage grouse and future opportunities for a robust economy throughout the West.
NRG Strategy Sees Growth Despite Low Gas Prices
Princeton, NJ-based NRG Energy Inc.’s strategy for future growth includes natural gas-fired generation regardless of what happens with the continuing low wholesale gas prices, CEO David Crane told a quarterly earnings conference call last Thursday. Crane characterized NRG’s three-pronged focus on gas-fired power, solar and retail energy sales as being able to thrive in a low- or high-priced gas market.
CEO: TransCanada Unaffected by Kinder-El Paso Merger Proposal
The proposed Kinder Morgan Inc. acquisition of El Paso Corp. doesn’t change Calgary, Alberta-based TransCanada Corp.’s strategy that is divided among natural gas, including shale; oil through its proposed addition to Keystone XL pipeline; and a growing gas-fired and renewable-based power generation business, CEO Russ Girling told financial analysts Tuesday as TransCanada reported a robust quarter-over-quarter improvement in profits for the third quarter.
