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ARC Resources Ltd ’s C$2.7 billion ($2.1 billion) bid to buy Seven Generations Energy Ltd will create the largest oil and gas producer in Canada’s Montney region, and may re-energize development in one of North America’s top shale plays. The combined company will have more financial strength to develop its 1.1 million net acres of land in a region that investors and drillers say has so far struggled to meet its full potential. The deal could also spur further acquisitions in a play that boasts attractive drilling economics and huge resource potential as oil and gas prices tentatively recover. ARC’s announcement on Wednesday is the latest in a wave of consolidation that has swept the Montney as companies buckled under collapsing oil prices amid the COVID-19 pandemic. Some investors are betting that U.S. President Joe Biden’s decision to suspend oil and gas permitting on federal lands and water could add to the Montney’s appeal. “The Montney, you could argue, has some of the best economics in the whole of North America,” said Jeremy McCrea, an analyst with Raymond James. The Montney straddles northeastern British Columbia and north-western Alberta. It is expected to produce 1.4 million barrels of oil equivalent […]
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