ConocoPhillips has purchased Caelus Energy's Alaska mid-sized Nuna prospect at very attractive price leveraging it's existing infrastructure to make it possible to evaluate and develop at profitable cost. This is anattractive fence line type acquisition that Ryan talked about recently. Management is continuing to refine existing assets and acquire value adding assets and prospects to replace and increase existing reserves.
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Great acquisition leveraging existing infrastructure. Caelus Energy lost its state royalty reduction and could not afford to build the pipeline and infrastructure to develop and produce. It's already been discovered and it was either give it up or sell it to Conoco at very low price.
Let’s see: the BU that gave us a billion dollar plus loss in the Chukchi Sea, from the current BU leader who gave us APLNG, from the same exploration leaders who denigrated unconventionals while they pushed “snuggle” Exploration and multiple billions lost in Worldwide Deepwater... who now push unconventionals in South America as The Next Big Shiny Thing... now give us new add-on Exploration in Alaska... what could go wrong?
Good job exploration, you always ‘find’ the best stuff. Given their track record the prospect will s--- nuts.