Energy Business Update: Thursday’s Cnooc and Nexen Episode, Petrobras Makes New Offshore Find
The Cnooc (NYSE:CEO) – Nexen (NYSE:NXY) saga continues, as the government of Canada has extended its review of the now-famous proposed merger by 30 days, and suggests that this could be followed by yet another extension. Prime Minister Stephen Harper’s government is evaluating the offer under the country’s foreign takeover law, which specifies that such transactions must yield a “net benefit” for Canada if approval is to be granted.
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Chesapeake Energy Corporation (NYSE:CHK) is said to be divesting more than 28,000 net acres in the Granite Wash and Hogshooter Wash areas located in western Oklahoma, which is an oil-and-gas play the company recently characterized as a “significant boost” to its long-term strategy. Chief Executive Aubrey McClendon has said the Hogshooter is “one of the best oil wells drilled onshore in the Lower 48 in the past several decades.”
Petrobras (NYSE:PBR) has made a new ultra-deepwater discovery of light oil at its Farfan prospect in one of the top active offshore oil frontiers on earth. The firm intends to drill down to 6,000 meters prior to presenting a formal assessment plan to Brazil’s oil regulator.