RE: RE: Celtic
Globe says Exxon paying premium for Celtic Exploration
2012-10-18 05:47 ET - In the News
Also In the News (C-IMO) Imperial Oil Ltd
The Globe and Mail reports in its Thursday, Oct. 18, edition that Imperial Oil parent Exxon Mobil is buying Celtic Exploration for $2.6-billion or $24.50 a share, a premium of 35 per cent its recent trading values. The Globe's Nathan VanderKlippe writes that the sale requires Investment Canada approval before it can proceed. For Exxon, the deal, worth $3.1-billion once debt is included, provides access to a pair of large natural gas plays that provide feedstock for the oil sands and a potential West Coast natural gas export terminal. For Celtic, it is the end of a decade that has seen it increase production to 22,000 barrels of oil equivalent a day, 75 per cent of it gas -- not the best ratio in recent years. That output coincided with gas prices in the cellar. But Celtic also built up a vast network of land for future production, with about 224,000 hectares in the Montney, a major gas field that straddles the Alberta-British Columbia border that made it uniquely attractive. Mr. VanderKlippe says Exxon was lured in part by the size of the land holdings. The Globe says it is a handsome payday for Celtic's original investors, who have seen their shares soar more than 50-fold over the past 10 years.