On August 2, Daewoo International announced that it has acquired 37% stake in Canada’s tight oil gas mines, in partnership with Devonian Natural Resources Private Equity Fund.
Tight oil is crude oil drilled from shale formations (sedimentary rock layers) where shale gas is stored. It is light oil that is high in carbon content and low in sulfur. Daewoo International acquired part of the Canadian block located in West Central Alberta, controlled by Bellatrix Exploration. The total area of this block is 12,320 acres and it is estimated to have approximately 48 million barrels of crude. Approximately 14.6 million barrels are allocated to shares owned by Daewoo International.
Total investments including the acquisition financing and drilling costs are predicted to be approximately 80 billion won (74 million Canadian dollars). Through joint investment with Bellatrix Exploration, Daewoo International will drill a total of 70 gross wells between 3Q/4Q 2013 and the end of 2015.