AFX Europe (Focus): Shell and Total in race for First Calgary - report (ShellNews.net) 20 Jan 05
Jan 20, 2005
LONDON (AFX) - European oil giants Royal Dutch/Shell Group and Total SA are two of a group of eight to 10 energy companies hoping to buy First Calgary, the 1.7 bln stg gas company which wants to auction itself off by the end of March, the Daily Telegraph reported.
The deal is expected to be one of the biggest oil and gas sales of the year.
First Calgary asked US investment bank Lehman Brothers to review its strategic options three months ago. Sources told the paper an outright sale to the highest bidder is now most likely.
First Calgary's major asset is a natural gas field in on-shore Algeria.
The field is attractive to big energy companies like Shell, Total, Statoil and Repsol because of its proximity to gas-hungry western Europe.
First Calgary needs to sell because the field requires capital expenditure of 2.5 bln usd (1.3 bln stg).
The company announced this week that independent analysts DeGolyer and MacNaughton had estimated the field to be 13.5 trillion cubic feet.