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Sumitomo's Loss Shows Shale Isn't Booming for Everybody

2014-10-20 06:00:00| Climate Ark Climate Change & Global Warming Newsfeed

Bloomberg: Land in the Permian Basin, the busiest shale patch in the U.S. oil boom, is worth either $1,000 an acre or 50 times more, depending. On Sept. 29, Calgary-based driller Encana Corp. (ECA) announced plans to buy a company that owns a West Texas prospect for $7.1 billion, or about $50,000 an acre. One day later, Tokyo-based Sumitomo Corp. estimated its land in the same region was worth a fraction of that price when it took a $1.55 billion writedown on its investment. The disparity shows how fickle...

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