Anadarko Petroleum announced on February 16 that it entered into a JV agreement with Mitsui E&P. Mitsui paid $14,000/acre to participate in Anadarko's Marcellus shale development project. Goldman Sachs comments "for the sector, another US shale gas JV supports our view that JV's, spinoffs and M&A will be a key 2010 theme for the E&P's, which can drive premium stock valuations despite low gas prices."
The $14,000/acre lends further credibility to the prices paid for acreage adjacent to Canadian Spirit Resources Inc. (SPI) at the October '09 BC land sale and demonstrates that SPI is clearly undervalued at its current stock price.
Mitsui must believe that there is a significant future for North American natural gas and this deal is a positive statement about gas in general.
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