Shell Gives Up On Methane Project in BC, ConocoPhillips Sells Algerian Unit: Energy Biz Update

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Royal Dutch Shell (NYSE:RDSA)(NYSE:RDSB) has abandoned its plans for a coalbed methane gas project near the Pacific Coast of Canada, because of  local opposition and also weak natural gas prices, which act concludes an eight-year struggle over development, according to the company and the government of British Columbia on Tuesday. Also, the provincial oil and gas authority will not issue further drilling rights in the Klappan area, which the local aboriginal community identified as possessing special cultural and spiritual significance, says Reuters.

ConocoPhillips (NYSE:COP) will divest ConocoPhillips Algeria division for an aggregate amount of $1.75 billion plus customary adjustments. The proposed sale to Pertamina is subject to co-venturer preemption rights and approval by the government of Algeria.

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On Tuesday, Uranium Resources (NASDAQ:URRE) said that it has filed a proxy statement to request shareholder approval of a reverse stock split, and also announced the closing of $5 million in bridge financing with Resource Capital Fund V and the firm’s plan to undertake a shareholder rights offering next year. So as to regain compliance with Nasdaq’s minimum $1 bid price requirement, and to maintain its NASDAQ listing, the board has unanimously okayed a charter amendment to conduct a reverse stock split.

Shares of Duke Energy Corporation (NYSE:DUK) were upgraded at Deutsche Bank from Hold to Buy, and its price target was raised  from $68 to $69. The analyst said that “When the dust settles, the level of fiscal drag will be a key factor – with utilities seeing a safety bid if the economy disappoints. Regulated Buys are mostly where we see above average growth and below-average regulatory risk at a fair price, ideally with catalysts. With sales under pressure from secular trends (e.g. efficiency) and ROEs drifting down, we increasingly see higher value in decoupling mechanisms, trackers or lack of rate cases. Duke does not tick all these boxes, but looks the best value of large cap regulateds and would benefit in the event of a favorable tax rate outcome.”

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