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Sinopec to Reap Rich Benefits From Daylight Takeover

Abantika Chatterjee
October 26, 2011

Sinopec's (NYSE: SHI  ) $2.1 billion buyout of Daylight Energy has shown how energy players can take advantage of the drop in energy stocks. The deal is also a sign of China strengthening its presence in the North American oil and gas industry. So, will Sinopec stand to gain from the deal?

Welcome daylight
Daylight has lot of advantages that drew Sinopec toward it. The Canadian oil and gas company has nearly 65,000 net hectares in the gas-rich deep basin area of northwestern Alberta and northeastern British Columbia. Along with this, the company also has significant holdings in the Montney shale formation, which has a pipeline run close to Kitimat in Canada. Alberta-based natural gas producer Encana (NYSE: ECA</