Sharechat Logo

FEG looks for fast bucks from new Canadian purchase

By Phil Boeyen, ShareChat Business News Editor

Friday 7th July 2000

Text too small?
Fletcher Energy expects a quick payback from a new $33 million investment in Canada.

The company has just finalised a purchase of nearly 125, 000 acres in Saskatchewan as part of a programme to improve the quality of its Canadian portfolio.

It already owns or leases well over a million acres of mineral rights in the Saskatchewan District, and included in the new purchase are five developed areas with a current daily output of around five million cubic feet of gas and 250 barrels of oil.

Just under a third of the new land is undeveloped, and the company plans to drill 12 heavy oil wells in July with the aim of having production on stream in August.

FEG's Canadian president, Mark Taylor, says he is confident the company will get a fast payback from the properties given the current high oil and gas prices.

The properties were bought from the Canadian subsidiary of Union Pacific Resources, which is an independent Texas-based oil and gas exploration company.

Union Pacific announced early in June it had completed the sale of selected non-core Canadian assets and had sold
13 properties to nine different purchasers for a total of US$82 million

UPR's chairman says disposing of the non-core properties will allow it to concentrate more intensely on high-value, growth areas of its Canadian portfolio.

NOTE: please be advised to read full articles from Business Desk Website, you will have to pay a subscription fee on their website.



  General Finance Advertising    

Comments from our readers

No comments yet

Add your comment:
Your name:
Your email:
Not displayed to the public
Comment:
Comments to Sharechat go through an approval process. Comments which are defamatory, abusive or in some way deemed inappropriate will not be approved. It is allowable to use some form of non-de-plume for your name, however we recommend real email addresses are used. Comments from free email addresses such as Gmail, Yahoo, Hotmail, etc may not be approved.

Related News:

Fletcher vote still on
Legal action still possible in Fletcher Challenge insider case
Shell sweetens Commerce application for FEG
Deane rallies the troops at Fletcher AGM
More time please says Commerce Commission
Shell applies for Fletcher Energy again
Fletcher sells NZR stake for $34 million
Shell wants to work it out
Fletcher hopeful FEG sale still on
"Nope" says Commerce Commission to Shell

IRG See IRG research reports