Southern Pacific Resource Corp STPJF

RE: NAOSC project to north taken out for 2B$

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Statoil Expands Into Alberta William Trent submits: Large Cap Watch List member Statoil (STO) has been making some moves recently. It bought some capacity in the Gulf of Mexico last year, as well as the oil and gas operations of conglomerate Norsk Hydro (NHY). According to some rumors, it is also planning to swap some European assets for Chinese ones. Now it has expanded into Alberta, Canada. Statoil to buy North American Oil Sands for $2 bln Norwegian energy group Statoil said it had agreed to buy a privately-held Canadian oil sands venture for nearly $2 billion on Friday, aiming to broaden its production base away from maturing North Sea oil fields.Analysts said the deal to buy North American Oil Sands Corporation [NAOSC] for 2.2 billion Canadian dollars ($1.97 billion) in cash appeared pricy. The offer of C$20 per share is significantly higher than a private placement NAOSC arranged in December at C$13.50, but Statoil brings its experience and capital base to the project, which may make it more viable. At any rate, the deal does seem to validate the recent enthusiasm over oil sands as a potential energy source. As to the price, the article continues: "We are developing our global heavy oil portfolio and strengthening our marketing position in North America," Lund said, adding that his company has gained experience in heavy oil projects in Venezuela. With Venezuela on a nationalizing kick, the stability of Canadian investments may appear to be a bargain at any price. Disclosure: author is long the U.S. Oil Fund (USO) at time of publication.