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Petroleum News: 2nd quarter Canadian M&A activity lively

Merger and acquisition activity in the Canadian oil patch gathered pace in the second quarter of 2006, pushing the first half tally to C$13.9 billion, beating the same period of 2005 by C$4.1 billion, according to Sayer Energy Advisors.

The April-June period posted five deals valued at C$1 billion or more, led by Penn West Energy Trust’s C$3.7 billion takeover of Petrofund Energy Trust.

Those five transactions accounted for just over two-thirds of the first half value.

Trust sector 57% of total

Sayer estimated that the trust sector represented transaction value of C$7.8 billion or 57 percent of the total.

In addition, there were two amalgamations of trusts — Sequoia/Daylight and Advantage/Ketch — which were not reflected in the value tally.

Shell Canada’s C$2.5 billion buyout of BlackRock Ventures was the only deal outside the trust sector that exceeded the billion-dollar mark.

Sayer said acquisition prices, based on proven plus probable reserves, averaged C$20.34 per barrel of oil equivalent for the first six months, up 33 percent from a year earlier.

Topping that list was the C$87.69 per boe paid by Canadian Oil Sands Trust for the Arctic gas assets of Canada Southern Petroleum.

—Gary Park

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