BHP Billiton Acquires Petrohawk Energy Corp Gas Shale
BHP Billiton—the Australian mining giant—has its eyes set on the expanding U.S. natural gas shale reserves. However, since countries with large natural resource reserves tend to take a protectionary stance against foreign companies exploiting those resources, BHP has sought a loophole that seems to be becoming a popular trend for firms seeking entry into foreign territories. The company has acquired U.S. shale gas and oil company Petrohawk Energy Corp for $12.1 billion, allowing the Australian firm entry to exploit U.S. shale plays.
The acquisition is the biggest in BHP Billiton’s history of mergers and acquisitions. BHP will pay $38.75 a share through a tender offer that will begin July 25. The price is 65 percent higher than Petrohawk’s closing price when the deal was announced.
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Petrohawk’s shale holdings are positioned in three of the most promising shale formations in the U.S.: the Eagle Ford, Haynesville and Permian Basin areas in Texas and Louisiana.
“Our offer and the associated substantial premium represent a unique opportunity for Petrohawk shareholders and recognize the growth opportunities embedded in its portfolio immediately,” Marius Kloppers,BHP’schief executive, said in a statement.
BHP will acquire roughly one million net acres of shale. The land is estimated to yield a net production of 158,000 barrels of oil per day and proven reserves of 3.4 trillion cubic feet of natural gas equivalent.
Hydrostor receives $4m funding for A-CAES facility in Canada
Hydrostor has received $4m funding to develop a 300-500MW Advanced Compressed Air Energy Storage (A-CAES) facility in Canada.
The funding will be used to complete essential engineering and planning, and enable Hydrostor to plan construction.
The project will be modeled on Hydrostor’s commercially operating Goderich storage facility, providing up to 12 hours of energy storage.
Hydrostor’s A-CAES system supports Canada’s green economic transition by designing, building, and operating emissions-free energy storage facilities, and employing people, suppliers, and technologies from the oil and gas sector.
The Honorable Seamus O’Regan, Jr. Minister of Natural Resources, said: “Investing in clean technology will lower emissions and increase our competitiveness. This is how we get to net zero by 2050.”
A-CAES has the potential to lower greenhouse gas emissions by enabling the transition to a cleaner and more flexible electricity grid. Specifically, the low-impact and cost-effective technology will reduce the use of fossil fuels and will provide reliable and bankable energy storage solutions for utilities and regulators, while integrating renewable energy for sustainable growth.
Curtis VanWalleghem, Hydrostor’s Chief Executive Officer, said: “We are grateful for the federal government’s support of our long duration energy storage solution that is critical to enabling the clean energy transition. This made-in-Canada solution, with the support of NRCan and Sustainable Development Technology Canada, is ready to be widely deployed within Canada and globally to lower electricity rates and decarbonize the electricity sector."
The Rosamond A-CAES 500MW Project is under advanced development and targeting a 2024 launch. It is designed to turn California’s growing solar and wind resources into on-demand peak capacity while allowing for closure of fossil fuel generating stations.
Hydrostor closed US$37 million (C$49 million) in growth financing in September 2019.