Last week Chevron (CVX) announced it had acquired 67,900 acres in the Duvernay shale formation in west-central Alberta from Alta Energy Luxembourg. Although the purchase price was not disclosed, TheStreet.com reports the price to have been just under $1 billion, which works out to around $14,000 an acre. If even close to the truth, that is a very bullish catalyst for Canadian energy firm Enerplus (ERF). ERF has acquired 85,000 acres in the Duvernay over the last three years at an average cost of less than $1,000/acre.
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The Duvernay Shale
Seeking Alpha contributor Joel Chury wrote an excellent instablog post on the Duvernay shale. In it, Chury compares...