Aurora looks for acquisitions in Eagle Ford with low NG prices

An Australian company that is active in Texas' Eagle Ford shale is looking at potential acquisitions and partnerships as natural gas prices have plummeted in North America.

Aurora Oil & Gas Ltd. reportedly put in a bid of $109 million to acquire Eureka Energy Ltd., reports Bloomberg.

Jon Stewart, the CEO of Aurora, said that such moves were likely to keep coming for his company.

"With the poor natural gas price in North America there are a lot of capital-constrained companies over there," he told the news source. "The volume of opportunities coming across our desk has really escalated."

In early April, prices of natural gas futures fell below $2 per million British thermal units, which is as low as they've been in 10 years. In addition to leading companies like Aurora to look at potential deals, these low prices have spurred much talk about the creation of LNG terminals in the U.S.

These LNG facilities would allow producers of natural gas in America to potentially exploit foreign markets with high demand for the hydrocarbon. Japan - the world's leading importer of LNG - had natural gas prices of around $16 per mBtu earlier this year.

Monthly information on natural gas futures is available at PennEnergy's Research area.

Did You Like this Article? Get All the Energy Industry News Delivered to Your Inbox

Subscribe to an email newsletter today at no cost and receive the latest news and information.

 Subscribe Now


Maximizing Operational Excellence

In a recent survey conducted by PennEnergy Research, 70% of surveyed energy industry professional...

Leveraging the Power of Information in the Energy Industry

Information Governance is about more than compliance. It’s about using your information to drive ...

Reduce Engineering Project Complexity

Engineering document management presents unique and complex challenges. A solution based in Enter...

Revolutionizing Asset Management in the Electric Power Industry

With the arrival of the Industrial Internet of Things, data is growing and becoming more accessib...

Latest PennEnergy Jobs

PennEnergy Oil & Gas Jobs