Unconventional gas companies are acquisition targets

Exxon's offer for XTO today could be the beginning of more acquisitions of unconventional gas companies. More deals are expected by the experts.

"Exxon is clearly showing its belief in unconventional resources and shales as a very economic source of development that can compete with other projects," said an analyst with Macquarie Group.

Exxon's senior vice-president Andrew Swiger said "Exxon predicts the global population will consume 50% more natural gas by 2030 than now."

Royal Dutch Shell, which recently bought Duvernay for its Montney play in northeast British Columbia, could be a buyer according to Richard Wyman, a senior oil and gas analyst at Cannacord Adams in Calgary.

A logical place for Shell to look is the Farrell Creek area if they want more exposure to the Montney shales. Shell already has a working relationship with Canadian Spirit Resources Inc. (SPI) through their Farrell Creek Gething CBM joint venture. Although SPI has a joint venture with Canbriam Energy Inc. for SPI's deep rights including the Montney, it's possible that Shell could expand into that area making both Canbrium and SPI potential targets.