Shell offers $5.9bln for Canada's Duvernay Oil

0 Comments | AFP, July, 2008

OTTAWA (AFP) — Shell Canada, a wholly-owned subsidiary of Royal Dutch Shell, on Monday offered to buy Duvernay Oil Corp. for 5.9 billion Canadian dollars (5.9 bln US dollars) to expand its North American natural gas holdings.

The 83 dollar per share cash offer, backed by Duvernay's board of directors, represents a 36 percent premium over the Canadian company's average share price over the last 30 days.

Duvernay is an Alberta-based oil and gas company engaged in the exploration and development of natural gas and crude oil, focused mainly on the Western Canadian Sedimentary Basin in Alberta and Northeastern British Columbia.

Duvernay owns some 450,000 acres (1,800 square kilometers) in the two large gas project areas, as well as processing and delivery...