Why Canada ???

17. September, 2013 News 2 comments
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A North American country, located in the Northern part of the continent, Canada attracts with its landscape and outstanding nature.  Views are great and beautiful, but potential of this country is even greater.  Recently three Polish companies connected with mining industry showed its interest in this region.

What convince them to aim in such faraway place?  

First signal came from KGHM which made a friendly acquisition of Quadra FNX. The value of the transaction amounted to CAD 2 900 000.00 (i.e. 3 343 720.00 $) Now renamed to KGHM International has become a leading producer of copper and silver. KGHM International Group has a diversified portfolio of assets in low risk countries and a portfolio of projects ensuring the development of the current production base, including 9 mines in: Poland, Canada, the USA, Chile, and 5 projects in the investment stage.

Next step was made by one of the richest people in Poland – Jan Kulczyk. His company Kulczyk Oil Ventures(KOV) bought Winstar Resources also connected with hydrocarbons industry. After acquisition it changed name into SERINUS ENERGY.  For KOV this transaction meant 50% production increase, triple increase of reserves and  13 concession in 5 countries.

Latest news comes from PKN ORLEN S.A., through its subsidiary ORLEN Upstream Sp. z o.o. it made an agreement with TriOil Resources Ltd.,  a Canadian company listed on the TSX Venture Exchange, which will initiate the acquisition of TriOil. PKN ORLEN has agreed with TriOil to acquire 100% of the shares of the company for CAD 2.85 per share, representing total cash consideration of approximately CAD 183 700 000 (i.e. 178 042 000 $) The offer has been accepted by the Board of Directors of TriOil, and will be considered by the shareholders of TriOil at the meeting of shareholders in November 2013.

In our view, TriOil is an optimal acquisition target. If the transaction is successfully completed, we will gain access to producing fields and will diversify our asset portfolio geographically. It also  offers an opportunity for the transfer of know-how from the mature and technologically advanced Canadian market,” Jacek Krawiec, PKN ORLEN’s CEO, said.

The past few years have been a period of intense growth for TriOil. In 2012, its hydrocarbon production increased by 65% year over year. In the first two quarters of 2013, its average daily production doubled over the corresponding period of 2012, reaching approximately 4,000 barrels of oil equivalent. Over the past few years TriOil has taken steps to expand the areas in which it has working interests, with TriOil’s principal operations now spanning some 3 500 square kilometers, including 1 100 square kilometers of hydrocarbon formations from which it produces both oil and natural gas.

This deal is the latest for a Polish company to buy Canadian assets, but obviously it is not the last one.

9,984,670 km sq (3,854,085 sq mi) of land and inland water bodies gives Canada the second place in the world by total area list. According to these  numbers we can imagine how many natural resources this land owns. Canada also dispose one of the biggest variety of minerals on earth (second place, after Russia). What attracts foreigners is not only about hydrocarbons and minerals, but also very rare elements.

What is more, comparing to other natural resources rich regions like Africa or Middle East, Canada  is very stable and safe place to invest. Low risk investments of course requires higher taxes and payments for government, but clear law and many years old steady economy is worth it for sure. Best example is current situation in Syria, investments there are frozen (or worse) because of civil war. Another advantage of buying an existing company is massive certainty that we will actually have a successful mine or well.

In conclusion it is important to mention the great potential of Canadian energy, mining, and exploration industry. In the mean time similar news are forecasted .

 

Sources:

http://www.wnp.pl

http://www.kghm.pl

http://www.orlen.pl

http://www.serinusenergy.com

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