By the simple act of opening its wallet and extracting a few billion dollars, Royal Dutch Shell
Shell will pay $5.8 billion for Duvernay (sounds sort of like an after-dinner drink, doesn't it?). That represents a healthy 42% premium to the Canadian company's closing price immediately before the announcement. But from the information I've found regarding Duvernay and the Montney tight gas trend -- which runs through parts of Northeast British Columbia and Alberta -- you can't help but think that Shell is shelling out sensibly. Lots of analysts have been tracking the Montney of late, and the feedback seems uniformly optimistic about the amount of gas it may contain.
Fine, you say, but Shell is so big that, at its best, the Montney won't be a "company maker" for it. You're right, but don't lose interest in the story. You need to know that there are other, smaller companies building positions in the play, Murphy Oil
So, if you're partial to promising natural gas plays and the companies involved in them, I'm here to suggest that you check out the Montney, along with the smaller companies mentioned above. Gas prices are fast closing the gap with oil, and truly significant plays are hard to come by.
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Fool contributor David Lee Smith doesn't own shares in any of the companies mentioned. He does welcome your questions, comments, or kibitzing. The Fool has a disclosure policy that's completely free of gas -- U.S., Canadian, or otherwise.