Skip to comments.Bellatrix calls off light oil venture with S. Korean firm
Posted on 06/03/2013 6:51:03 PM PDT by TexGrill
Bellatrix Exploration Ltd. said a $300-million joint venture deal with a South Korean firm to develop light oil plays in west-central Alberta is off, as the unnamed company was not able to meet the closing conditions by the May 31 deadline.
In the past few years, Canadian oil and gas companies have increasingly come to rely on investment from fast-growing Asia, particularly in the form of joint venture partnerships.
More recently, however, a number of planned deals in the energy sector have failed to materialize amid concerns about project returns, volatile oil prices and congestion in pipelines that transport Alberta oil to market.
The Canadian government's policy to block major oil sands takeovers by foreign state-owned enterprises in the wake of the deal between China's CNOOC Ltd. and Nexen Inc. has also added a chill in the broader energy sector.
A Bellatrix news release on Monday said the Calgary-based company "will consider alternative joint venture partners for the proposed Ferrier-area Cardium joint venture as well as continuing to consider other joint venture partners for the company's other interests in the Cardium resource play."
Shares of Bellatrix dropped 35 cents or 6.4 per cent to close at $5.10 on the Toronto Stock Exchange Monday, and traded as low as $4.70 during the day.
Company executives were not available for further comment. The news release said Bellatrix chief executive officer Raymond Smith was on his way back from Seoul. A conference call is scheduled for Tuesday.
(Excerpt) Read more at theglobeandmail.com ...