Burlington makes bold move into Canadian gas sector

Gary Park

Just as the pendulum was showing signs of swinging away from U.S. takeovers in Canada, Houston-based Burlington Resources reversed the momentum by swallowing Calgary-based Poco Petroleums in a C$3.7 billion deal (including C$1.1 billion of debt).

It is Burlington’s first foray north of the border and, according to chairman and CEO Bobby Shackouls, boosts his company’s position as a major independent that focuses on the North American natural gas market.

In fact, the new entity moves Burlington to fourth place among gas producers on the continent, trailing only Exxon, BP Amoco and Royal Dutch/Shell. Combined worldwide reserves will be 9.9 trillion cubic feet and daily production averages 2.1 billion cubic feet of gas and 106,000 barrels of oil and liquids. The Poco contribution is 490 million cubic feet per day of gas and 37,515 barrels of oil and liquids.

Poco President Craig Stewart said the deal helps accelerate his company’s shift to natural gas as demand and prices rise. “In order to meet the growing need for gas in North America, more wells have to be drilled and Burlington is committed to doing that,” he said.