BG Group wins bid for Pure Energy

In late March, BG Group won control of Pure Energy Resources after shareholders owning 70% of the Australian group’s shares accepted the U.K. oil and gas company’s A$8 (US$5.29) per share offer. However, BG is yet to secure the 20.3% stake owned by Australia’s Arrow Energy, which abandoned its own pursuit of Pure Energy. The bid for Pure initially pitted BG against its larger rival Royal Dutch Shell P.L.C., which is a joint venture partner of Arrow in developing coal bed methane in Australia and around the world. However, Shell said in February that it would sell its 11% stake to BG. BG plans to use the coal bed methane it will produce in Australia to feed a liquefied natural gas plant in Queensland. (March 4/23, 2009)