• 4 minutes China 2019 - Orwell was 35 years out
  • 7 minutes Wonders of US Shale: US Shale Benefits: The U.S. leads global petroleum and natural gas production with record growth in 2018
  • 11 minutes Trump will capitulate on the trade war
  • 14 minutes Glory to Hong Kong
  • 8 mins China's Blueprint For Global Power
  • 4 hours Yesterday Angela Merkel stopped Trump technology war on China – the moral of the story is do not eavesdrop on ladies with high ethical standards
  • 3 hours IMO 2020:
  • 5 hours Brexit agreement
  • 32 mins Idiotic Environmental Predictions
  • 2 hours The Problem Is The Economy, Not The Climate
  • 21 hours World Stocks Drop And Futures Tread Water After China Reports Worst GDP Growth In 30 Years
  • 3 hours Australian Hydroelectric Plant Cost Overruns
  • 13 hours The Ultimate Heresy: Technology Can't Fix What's Broken
  • 22 hours Deepwater GOM Project Claims Industry First
  • 1 day Why did Aramco Delay IPO again ? It's Not Always What It Seems.
  • 6 hours NATGAS, LNG, Technology, benefits etc , cleaner global energy fuel
Alt Text

This Supermajor Is Leading The Energy Sector

This supermajor has been standing…

Alt Text

How To Play A Recovery In Oil Prices?

A realistic correction in the…

Dave Forest

Dave Forest

Dave is Managing Geologist of the Pierce Points Daily E-Letter.

More Info

Premium Content

This Unlikely Spot Just Got $465 Million in Oil Investment

We're not hearing a lot these days about investment in new petroleum projects.

West Texas Intermediate oil prices are once again testing $45. And natgas prices in places like the U.S. are still hovering near decade lows. Meaning that most producers and financial backers are laying off plans for acquisitions and drilling.

But one place bucked that trend last week. Receiving a big cash injection from some of the biggest investors in the energy sector.

That's the Western Canadian Sedimentary Basin. Related: Why The World Needs Both Shale And Tar Sands

Energy private equity giant Riverstone Holdings announced last Wednesday that it will commit funds to a new venture in this area. Namely, private E&P firm CanEra Inc.

Riverstone--in concert with a syndicate of PE investors, and the management team of CanEra--will reportedly commit $465 million in total funding for the company. Representing a very significant investment, especially amid the current down market for energy.

The investors gave little detail on what opportunities are attracting them here. Saying only that CanEra will be based in Calgary, and will target opportunities in Canada.

The biggest selling point may be the company's management team. Which has already completed two Riverstone-backed ventures--CanEra I and CanEra II--in western Canada. The last of which was sold to Canadian producer Crescent Point for $750 million in early 2014. Related: Alberta One Of Hardest Hit By Lower Oil Prices

That firm focused on development of the Torquay Formation--an oil-rich package of rocks that lies below the prolific Bakken fields, in the eastern Canadian Basin. So it's possible we may see the new CanEra return to these stomping grounds.

Whatever the case, it's encouraging to see money coming into the E&P sector. And notably interesting that big buyers are paying close attention to Canada--a place that's been almost completely off the map for many American investors.

Watch for more news on the exact project direction that CanEra takes--and results from this company, that may confirm the opportunity that appears to be unfolding across Canadian oil and gas fields.

Here's to going where others don't,

Dave Forest

More Top Reads From Oilprice.com:




Download The Free Oilprice App Today

Back to homepage



Leave a comment

Leave a comment




Oilprice - The No. 1 Source for Oil & Energy News
Download on the App Store Get it on Google Play