BHP will purchase Petrohawk
Source: Agencies |
July 16, 2011, Saturday
|
Print Edition
Print Edition
BHP Billiton Ltd yesterday said it would buy US-based oil company Petrohawk Energy for US$12.1 billion in cash, giving the world's largest miner greater access to US shale gas assets.
Melbourne-based BHP said it would pay US$38.75 for each Petrohawk share in an all-cash tender offer. The total value of the deal is US$15.1 billion, including Petrohawk's debt.
The acquisition will give BHP assets covering about 400,000 hectares in Texas and Louisiana, with an estimated 2011 production of about 26.9 million cubic meters equivalent per day, or 158,000 barrels of oil equivalent each day. The tender offer is expected to begin by July 25.
The deal comes just months after BHP bought a US$4.75 billion stake in a shale gas field in Arkansas, which marked the first move by the company into the rapidly growing US shale gas business.
Innovations in technology and higher energy prices over the past few years have seen drillers tapping the vast amounts of natural gas in shale deposits, which were once considered uneconomic. More recently, drillers have learned to adapt the new technology to also produce oil.
Melbourne-based BHP said it would pay US$38.75 for each Petrohawk share in an all-cash tender offer. The total value of the deal is US$15.1 billion, including Petrohawk's debt.
The acquisition will give BHP assets covering about 400,000 hectares in Texas and Louisiana, with an estimated 2011 production of about 26.9 million cubic meters equivalent per day, or 158,000 barrels of oil equivalent each day. The tender offer is expected to begin by July 25.
The deal comes just months after BHP bought a US$4.75 billion stake in a shale gas field in Arkansas, which marked the first move by the company into the rapidly growing US shale gas business.
Innovations in technology and higher energy prices over the past few years have seen drillers tapping the vast amounts of natural gas in shale deposits, which were once considered uneconomic. More recently, drillers have learned to adapt the new technology to also produce oil.
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