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PetroChina’s Canadian Project OKed – Analyst Blog

Zacks Market Commentaries — Wed, 30 Dec 2009 16:00:16 +0000

PetroChina Company Ltd. (PTR), the largest integrated oil company in China, gained approval from the Canadian government to acquire a majority stake in two oil sands projects in western Canada for C$1.9 billion ($1.8 billion). The decision is subject to commitments by PetroChina on spending and investment, as well as job creation.

As per the terms of the agreement with Athabasca Oil Sands Corp. (a privately held Calgary-based group) announced in August, the Chinese energy giant will purchase a 60% working interest in the Canadian company’s proposed MacKay River and the Dover ventures in northern Alberta. The deal is currently the largest venture by China in Canadian oil sands.

According to an independent third party evaluation, the oil sands that PetroChina plans to exploit are estimated to contain as many as five billion barrels of reserves, about half of Athabasca’s total recoverable resources. Peak production from the two sites is projected to reach 300,000 – 500,000 barrels per day, with first volumes expected in 2014.

The agreement calls for the Chinese behemoth to provide certain financing arrangements for Athabasca, ensuring timely development of the MacKay River and Dover projects. In general, oil sands projects are characterized by long-term capital-intensive investments that require huge up-front expenditures. The total capital cost to develop the MacKay River and the Dover properties are estimated to be in the range of C$15 – C$20 billion.

PetroChina has committed to contribute more than C$250-million for its share of projects over the next three years, while boosting employment levels. The company will also maintain a regional office in Alberta for five years.

Oil sands, also known as tar sands, are naturally occurring mixtures of bitumen (a sticky, tar-like form of petroleum), water and sand that are found in large deposits in Athabasca, Peace River, and Cold Lake in Canada’s Alberta province. The oil sands in northern Alberta hold the largest crude reserves outside the Middle East.

We see this transaction as part of PetroChina’s long-term strategic plan to explore one of the world's largest untapped oil regions and supplement its conventional reserves.

In recent times, oil sands have drawn growing interest from Chinese energy groups. Sinopec (SNP) owns a 10% stake in a planned Total SA (TOT) project, while CNOOC Ltd. (CEO) bought a 17% interest in a small privately held oil sands project.
Read the full analyst report on "PTR"
Read the full analyst report on "SNP"
Read the full analyst report on "TOT"
Read the full analyst report on "CEO"
Zacks Investment Research

Zacks Analyst Blog Highlights: PetroChina Company Ltd., Sinopec, Total SA, CNOOC Ltd. and Vodafone – Press Releases

Zacks Market Commentaries — Wed, 02 Sep 2009 13:55:59 +0000

For Immediate Release

Chicago, IL – September 2, 2009 – Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include: PetroChina Company Ltd. (PTR), Sinopec (SNP), Total SA (TOT), CNOOC Ltd. (CEO) and Vodafone (VOD).

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Here are highlights from Tuesday’s Analyst Blog:

PetroChina Sings 'O Canada'

As per the terms of the agreement with Athabasca Oil Sands Corp. (a privately held Calgary-based group), the Chinese energy giant will purchase a 60% working interest in the Canadian company’s proposed MacKay River and the Dover ventures in northern Alberta. The deal, which awaits certain regulatory approvals, is currently the largest venture by China in Canadian oil sands.

According to an independent third party evaluation, the oil sands that PetroChina plans to exploit are estimated to contain as many as five billion barrels of reserves, about half of Athabasca’s total recoverable resources. Peak production from the two sites is projected to reach 300,000 – 500,000 barrels per day, with first volumes expected in 2014.

The agreement calls for the Chinese behemoth to provide certain financing arrangements for Athabasca, ensuring timely development of the MacKay River and Dover projects. In general, oil sands projects are characterized by long-term capital-intensive investments that require huge up-front expenditures. The total capital cost to develop the MacKay River and the Dover properties are estimated to be in the range of C$15 – C$20 billion.

Oil sands, also known as tar sands, are naturally occurring mixtures of bitumen (a sticky, tar-like form of petroleum), water and sand that are found in large deposits in Athabasca, Peace River, and Cold Lake in Canada 's Alberta province. The oil sands in northern Alberta hold the largest crude reserves outside the Middle East.

We see this transaction as part of PetroChina’s long-term strategic plan to explore one of the world's largest untapped oil regions and supplement its conventional reserves.

In recent times, oil sands have drawn growing interest from Chinese energy groups. Sinopec (SNP) owns a 10% stake in a planned Total SA (TOT) project, while CNOOC Ltd. (CEO) bought a 17% interest in a small privately held oil sands project.

Vodafone Accelerates 3G

Vodafone (VOD) reportedly upgraded its 3G mobile broadband network to offer maximum theoretical download speed of 14.4 megabits per second (Mbps). However, users will get a practical download speed of up to 10.8 Mbps. The upgraded service will be initially available to the customers across London, Birmingham and Liverpool and extended to the rest of UK in due course

The world’s largest revenue-generating wireless carrier launched its 3G services in 13 countries in fiscal 2008. Vodafone’s 3G wireless broadband technology is based on High-Speed Downlink Packet Access (HSDPA) and provides peak data rates of up to 7.2 Mbps. It spent over £14 billion ($28 billion) to obtain 3G wireless licenses in various countries, devoting nearly 40% of capital expenditure to expand its 3G network.

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Zacks Investment Research

PetroChina Sings ‘O Canada’ – Analyst Blog

Zacks Market Commentaries — Tue, 01 Sep 2009 19:01:34 +0000

Yesterday, PetroChina Company Ltd. (PTR), the largest integrated oil company in China, agreed to pay C$1.9 billion ($1.7 billion) to acquire a majority stake in two oil sands projects in western Canada.

As per the terms of the agreement with Athabasca Oil Sands Corp. (a privately held Calgary-based group), the Chinese energy giant will purchase a 60% working interest in the Canadian company’s proposed MacKay River and the Dover ventures in northern Alberta. The deal, which awaits certain regulatory approvals, is currently the largest venture by China in Canadian oil sands.

According to an independent third party evaluation, the oil sands that PetroChina plans to exploit are estimated to contain as many as five billion barrels of reserves, about half of Athabasca’s total recoverable resources. Peak production from the two sites is projected to reach 300,000 – 500,000 barrels per day, with first volumes expected in 2014.

The agreement calls for the Chinese behemoth to provide certain financing arrangements for Athabasca, ensuring timely development of the MacKay River and Dover projects. In general, oil sands projects are characterized by long-term capital-intensive investments that require huge up-front expenditures. The total capital cost to develop the MacKay River and the Dover properties are estimated to be in the range of C$15 – C$20 billion.

Oil sands, also known as tar sands, are naturally occurring mixtures of bitumen (a sticky, tar-like form of petroleum), water and sand that are found in large deposits in Athabasca, Peace River, and Cold Lake in Canada 's Alberta province. The oil sands in northern Alberta hold the largest crude reserves outside the Middle East.

We see this transaction as part of PetroChina’s long-term strategic plan to explore one of the world's largest untapped oil regions and supplement its conventional reserves.

In recent times, oil sands have drawn growing interest from Chinese energy groups. Sinopec (SNP) owns a 10% stake in a planned Total SA (TOT) project, while CNOOC Ltd. (CEO) bought a 17% interest in a small privately held oil sands project.

We currently rate PetroChina ADRs as Neutral.
Read the full analyst report on "PTR"
Read the full analyst report on "SNP"
Read the full analyst report on "TOT"
Read the full analyst report on "CEO"
Zacks Investment Research

Strata Oil and Gas Inc. (SOIGF.OB) Begins Readying for Production of Peace River Property, Expects 56,000 bpd Peak

QualityStocks — Wed, 01 Jul 2009 16:31:26 +0000

Getting your ducks in a row before you make a move is the best way to start a new project. Understanding possible conditions , whether likeable or not, is the best rout toward to profit. This obvious fact is also an indicator that a company is paying attention and ready to capitalize on an opportunity. [...]

Oil Price Hits Six-Month High – Are We Headed Higher?

QualityStocks — Wed, 27 May 2009 17:03:22 +0000

Today, the price of oil rose to a six-month high of $63.45 and the national average price for a gallon of regular unleaded gasoline rose to $2.655. In the last month alone, the price for a barrel of light crude oil increased approximately 25%. Is this the peak of the rally or should we expect [...]

Enterprise Oilfield Group, Inc. (TSX: E) Offers a Comprehensive Array of Services

QualityStocks — Wed, 28 Jan 2009 15:59:08 +0000

With a fleet of over 260 trucks and heavy-duty units, Enterprise Oilfield Group is capable of building pipelines, facilities and installing underground utilities anywhere in Northern and Central Alberta. The company works with both the oil & gas and utility markets, with the majority of projects in pipeline construction and the minority in underground utility [...]

Enterprise Oilfield Group, Inc. (TSX: E) Third Quarter Results; Long Term Outlook

QualityStocks — Tue, 20 Jan 2009 14:17:45 +0000

Recently, Enterprise Oilfield Group, Inc. reported that its consolidated revenue for the three months ended September 30, 2008 totaled $8.7 million versus $8.5 million for the third quarter of the year prior. The Company had EBITDAS of $1.6 million and a net income of $0.6 million for the quarter. The management team believes the long term [...]

Tamm Oil & Gas Corp. (TAMM.OB) Continues Oil Sand Lease Development and Testing

QualityStocks — Tue, 04 Nov 2008 16:30:40 +0000

Anybody listening to the markets today has likely heard â€œlong-term horizonâ€ more than once or twice. For the most part, long term is what most investors are planning for as they wait for a recovery to begin. With this in mind, thinking about companies that have a longer lead time to market may be a [...]

Strata Oil & Gas Inc. (SOIGF.OB) Reports Potential of Major “Heavy Oil” Deposits in Canada

QualityStocks — Thu, 14 Aug 2008 16:14:07 +0000

The next quarter thinkers of today’s investment world can tend to be fairly short-sighted. Profits for any given quarter are important but not necessarily an indication of where the company may be going. A “miss” in this or next quarter may seem like poor performance, unless one sees that the company was merely positioning itself [...]