Quebec’s Junex Says Utica Offer “Not Superior” – Merger in Doubt

MDN told you in June that Canada’s Quebec Province announced it will commit fracking suicide by implementing a permanent frack ban (see Quebec to Ban Utica Shale Drilling, Most Other Drilling Too). Quebec’s announcement is a virtual death sentence for oil and gas companies in the province. The shale fracking ban is coupled with new drilling standards so tight that even conventional drillers will have a difficult, almost impossible time. The result was immediate. Junex, a driller headquartered in Quebec with 1 million leased acres in the St. Lawrence lowlands (where there is Utica Shale), announced it would sell out to/merge with Cuda Energy, headquartered in Calgary, Alberta. Except now the merger is in doubt. It seems the merger was Cuda’s idea and was “unsolicited.” But hey, what’s a oil/gas driller going to do if they can’t horizontally drill and frack? Junex looked the offer over in detail and says it “does not constitute a ‘Superior Proposal’.” Oh oh. Is this a negotiating tactic for a higher price/better terms? What’s Plan B for Junex if they don’t sell out to Cuda? Here’s the latest on the Cuda/Junex potential merger…

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