Canadian M&A deals valued at C$9.1 billion in 2003

Gary Park

Petroleum News Calgary correspondent

The total enterprise value of merger and acquisition transactions in Canada was C$9.1 billion last year, compared with C$25.4 billion in 2002 — a slump due almost entirely to the C$15.9 billion merger that created EnCana in 2002.

The statistics compiled by Sayer Securities showed 2003 had 135 transactions valued at more than C$5 million, compared with 143 in 2002.

Royalty income trusts accounted for almost half the value of deals at C$4.5 billion, up from C$3.5 billion in 2002.

The median acquisition price for Canadian reserves rose 12 percent last year to C$9.33 per barrel of oil equivalent, the highest price since Sayer began compiling M&A statistics in 1988.

The price for established reserves has climbed 93 percent in the last five years from C$4.83 per boe in 1999.