chevron buys into utica, page-4

US Oil major Chevron last night launched an agreed $4.3 billion takeover bid for shale gas explorer and producer Atlas Energy. The bid values Atlas at US$4433 per net acre owned, US$4.22 per Gigajoule of proved reserve (1P) and US$0.34 per estimated recoverable contingent resource.



Ivor Ries from Baillieus is quoted this morning "If you apply the same valuation multiples to Molopo Energy's Utica Basin shale gas acreage in Quebec, a valuation of US$1.5 billion is arrived." However he states that caution needs to be applied because Atlas' projects are at a far more advanced stage and have had extensive drilling.



Ivor also stated that it is interesting to note that a significant portion of Atlas' net acreage position covering the Utica Shales, the formation that Molopo's resources are concentrated in.

He believes that this deal will provide ongoing support for the MPO share price.