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Bellatrix calls off light oil venture with S. Korean firm
Globe and Mail ^ | 06/03/2013 | Kelly Cryderman

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 ...


TOPICS: Canada
KEYWORDS: canadaeconomy
Many investors from the Asia-Pacific region only know how to invest in real estate, since they see their valuation rise monthly, and they grow accustomed to see increased returns. So they are clueless about high-risk investments and abandon ship whenever something goes wrong. They haven't figured there's big money in oil & gas but they could also lose big time money too.
1 posted on 06/03/2013 6:51:03 PM PDT by TexGrill
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To: TexGrill
Its over!


2 posted on 06/03/2013 8:17:28 PM PDT by icwhatudo (Low taxes and less spending in Sodom and Gomorrah is not my idea of a conservative victory)
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