• Royal Dutch Shell Plc, London, (NYSE: RDS.A) plans to acquire the minority interest in Shell Canada Ltd., Calgary, (Toronto: SHC) for C$40 per share in a deal valued at approximately C$7.7 billion.

Shell Canada is the third-largest producer in Canada's oil sands. Production is approximately 68,000 bbl. of bitumen and 521 million cu. ft. of gas per day. It also has a 31.3% share of the Sable project offshore Nova Scotia, a partnership in the proposed Mackenzie gas project in northern Canada and an exploration interest in the Orphan Basin offshore Newfoundland.

Royal Dutch Shell currently owns 78% of Shell Canada.

Royal Dutch Shell chief executive Jeroen van der Veer says, "Our proposal should create the opportunity for the group to build further on a strong position in Canada, using the strengths that only a company of our global scale can bring."

CIBC World Markets Inc. is financial advisor to Shell Canada.



• Pearl Exploration and Production Ltd., Calgary, (Toronto Venture: PXX) plans to acquire Atlas Energy Ltd., Calgary, (Toronto: AED) for 0.82 Pearl share per Atlas share for a total deal value of C$417 million, including C$77 million in assumed debt.

The assets are near Onion Lake in northeastern Alberta and northwestern Saskatchewan. Atlas also has projects in San Miguel and Palo Duro, Texas, and the shallow Gulf of Mexico. Net production is approximately 5,800 BOE per day. Pro forma, Pearl's output will be some 8,000 BOE per day.

GMP Securities LP is financial advisor to Pearl and Peters & Co. Ltd. is financial advisor to Atlas.



• Tusk Energy Corp., Calgary, (Toronto: TSK) plans to acquire Zenas Energy Corp., Calgary, (Toronto: ZNS) for 1.033 Tusk share per Zenas share in a deal valued at approximately C$120.1 million. Zenas' proved reserves are 4.7 million BOE. Pro forma, Tusk will produce some 3,000 BOE per day (50% liquids), and hold 200,000 net undeveloped acres. Orion Securities Inc. is financial advisor to Tusk and Westwind Partners Inc. is strategic advisor. Canaccord Capital Corp. is financial advisor to Zenas and GMP Securities LP is strategic advisor.



• Sputnik Group Ltd., Pogan Investment Corp., Sulidad Invest & Trade Inc., Hanseatic Investment Holdings Ltd., Drake Associates LP and Field Nominees Ltd. plan to make a partial takeover of Innova Exploration Ltd., Calgary, (Toronto: IXL) by acquiring up to 6.7 million shares (some 34.7%) valued at approximately C$44.2 million. Innova's core assets are in western Canada. Production is some 3,316 BOE per day. GMP Securities LP is financial advisor to Innova.



• ARC Resources Trust, Calgary, (Toronto: ARX) has acquired properties in Manitoba for C$74 million. Production is 785 BOE per day, increasing ARC's daily output to average 63,000 BOE.



• Jed Oil Inc., Calgary, (Amex: JDO) has sold its working interests in the East Ferrier area of Alberta for C$27.5 million. Jed acquired the assets in a property swap with Enterra Energy Trust, Calgary (NYSE: ENT). Production is some 480 BOE per day.



• High Plains Energy Inc., Calgary, (Toronto Venture: HYE) has acquired Action Energy Inc., Calgary, (Toronto Venture: AEC) for 2.5 High shares per Action share in a deal valued at C$21.3 million. The company now has land in western Canada and Montana. Production is 700 BOE per day (55% liquids). Proved-plus-probable net reserves are some 10 million BOE.



• Silverwing Energy Inc., Calgary, (Toronto: SVW) has acquired assets and facilities in northeastern British Columbia for C$15.2 million. Silverwing's total production from this area is now 15 million cu. ft. of gas per day.



• Pegasus Oil & Gas Inc., Calgary, (Toronto Venture: POG.A) has acquired 40,950 net acres of undeveloped land in central Alberta for C$13.1 million. Production is 150 BOE per day.



• Kootenay Energy Inc., Calgary, (Toronto Venture: KTY) has acquired producing properties in Alberta for C$11.7 million in cash. Production in four main areas is some 270 BOE per day (82% oil) and 60 BOE on minor properties.



• Cambridge Resources Inc., Calgary, (Pink Sheets: CBRP) plans to acquire privately held Peace West Energy Corp., Calgary, for an undisclosed price. Assets include leases in northern Alberta.

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