Daewoo Int'l to Move into Tight Oil Business in Canada

SEOUL, KOREA- Daewoo International will set out to develop "tight oil" fields in Canada. Tight oil is a petroleum play that consists of light crude oil contained in petroleum-bearing formations of low permeability, often shale or tight sandstone. The POSCO Group company said on August 2 that it has acquired a 50-percent stake in a tight oil gas well controlled by Bellatrix Exploration in partnership with Devonian Natural Resources Private Equity Fund. The fund was create in October last year by Korea Investment Holdings.

Daewoo International will invest a total of US$71.2 million for the stake and exploration. It won a right to sell 14.6 million barrels of oil equivalents out of the total reserves of 48 million BOE. The two companies will soon begin explorations and commercial production. By 2015, they will have bored 70 drill holes in fields located 200 kilometers northwest of Calgary.

The largest general trading company in Korea has also won the option to invest in other fields that Bellatrix will develop in the future. The company expects that it will be able to increase its presence in Canada's tight oil development business.

Korea IT Times (info@koreaittimes.com) 다른기사 보기