In this week's news update, the rig count declines again, and Suncor Energy won't extend its hostile takeover offer for Canadian Oil Sands.
An executive with Suncor Energy says the company won’t extend its hostile takeover offer for Canadian Oil Sands past its Dec. 4 deadline.
Suncor Energy took a $4.3 billion all-stock offer directly to shareholders on Oct. 5 after attempts at inking a friendly deal were rebuffed by Canadian Oil Sands leadership in the spring. The Alberta Securities Commission is now hearing arguments into whether Canadian Oil Sands should be allowed to keep its defense against hostile takeovers, which establishes that a bid must be open for 120 days.
Canadian Oil Sands enacted the new defense after the offer was made to shareholders. Suncor argues that shareholders should have the opportunity to decide for themselves whether to take the deal.
Another Decline for US Rig Count
The number of rigs exploring for oil and natural gas in the U.S. last week declined by 13 to 744, according to data released by Baker Hughes on Nov. 27.
The Houston-based Oilfield Services company says 555 rigs were seeking oil and 189 for natural gas. A year ago 1,917 rigs were active.
Texas lost six rigs, while Alaska, California, Colorado, Louisiana, North Dakota, Pennsylvania and Wyoming each lost one. New Mexico gained two rigs and Oklahoma gained one.
Utah, Arkansas, Kansas, Ohio and West Virginia were unchanged.
Oilfield Waste Pit Repairs Near Completion
An old oilfield waste pit that was eroding into the Little Missouri River is expected to be completely cleaned up and fortified soon, according to the North Dakota Department of Mineral Resources (DMR).
The pit, located near Medora, North Dakota, is a 1960s-era depository for oilfield cuttings and fluids that likely contains oil and salts.
The company that owned the pit, Amerada Petroleum Corp, dried and plugged the pit after it was abandoned when a nearby oil well failed to produce. The company was released from its bond to the site in 1983, leaving the DMR responsible for its further reclamation.