Petro-Canada captures U.S. Rockies gas with $719M Prima Energy takeover: “Petro-Canada, continuing its expansion beyond petroleum and outside Canada, has announced a $719-million ($534-million US) takeover of Prima Energy Corp., a Rocky Mountain natural gas company based in Denver.”
The company also said that the deal has been approved by the boards of directors of both companies. As well, in the event the acquisition failed in favour of a rival bid, Prima Energy has agreed to pay a break-up fee of $18 million to Petro-Canada. Denver, Colorado-based Prima is in the business of finding, extracting, and refining unconventional gas — which is coalbed methane, or gas contained through coal seams, and low permeability reservoirs.
Ron Brenneman, CEO of Petro-Canada, says unconventional gas offers “all kinds of future potential.” He went on to say that with conventional reserves declining, unconventional gas “still in its infancy” is expected to fill 40 percent of the U.S. natural gas supply by 2025.
The deal seems to make sense, though the oil and gas industry isn’t exactly one I have a lot of knowledge about. So, having said that, I would encourage readers to peruse the article from The Canadian Press.
Meanwhile, Emeryville, Calf.-based Ask Jeeves said it bought “substantially all of the assets of [San Jose, Calif-.-based] Tukaroo, Inc.” for an undisclosed amount of money. Tukaroo produces and distributes desktop search software. Desktop search is new field that search companies are starting to explore. The idea is to tie your profitable Web search business to the consumer so they don’t want to use any other service, before Microsoft gets to market with its own algorithmic search technology and paid listings business. Google is reportedly developing its own software for searching files on a computer user’s hard drive, code-named Puffin, and would presumably tie-in with the Google Deskbar.