First Calgary seeks pact with Repsol

First Calgary Petroleums has signed an agreement in principle with Spain’s Repsol to jointly develop its large natural gas finds in Algeria.

If a final pact is signed it will see the Calgary-based junior grow into a production company from a pure explorer.

But First Calgary President and Chief Executive Officer Richard Anderson has cautioned that there are major obstacles still to be cleared in resolving how quickly the reserves can be developed.

Repsol is eager to participate in a liquefied natural gas terminal to open up development of the Berkine Basin, which is believed to hold 13 trillion cubic feet of reserves.

In the meantime, First Calgary is no longer reviewing strategic options, which many investors had hoped for more than six months would result in an outright sale.

—Gary Park