November 9, 2017 - 7:30 AM EST
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Featured Company News – Chevron's Canadian Unit Makes its Debut in Canadian Shale Play with the Development of Kaybob Duvernay

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LONDON, UK / ACCESSWIRE / November 9, 2017 / Pro-Trader Daily takes a look at the latest corporate events and news making the headlines for Chevron Corp. (NYSE: CVX), following which we have published a free report that can be viewed by signing up at http://protraderdaily.com/optin/?symbol=CVX. The Company's Canadian arm, Chevron Canada Limited ("Chevron"), announced on November 06, 2017, that it is proceeding with the development of its lease holdings in the Kaybob Duvernay area of west-central Alberta. The Company's decision was taken based on a three-year-long appraisal program. This project would be Chevron's first ever shale play development in Canada. For immediate access to our complimentary reports, including today's coverage, register for free now at:

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Commenting on the development, Jeff Gustavson, President, Chevron Canada Ltd, said:

"The Duvernay formation is one of the most prospective liquids-rich shale plays in North America. Chevron Canada looks forward to realizing the value of this resource from our industry-leading position while delivering economic benefits to local communities, Alberta and Canada. Chevron is committed to collaborating with aboriginal peoples and local communities to build long-term trusting and mutually beneficial relationships related to the Kaybob Duvernay development."

Details of the development project at Kaybob Duvernay

The Duvernay shale gas play is located near Fox Creek, Alberta, approximately 260 km northwest of Edmonton, Canada. the liquids-rich Duvernay formation has approximately 330,000 acres and Chevron has a 70% interest in this project the balance 30% interest is with KUFPEC Canada Inc. (a wholly owned subsidiary of Kuwait Foreign Petroleum Exploration Company) with whom Chevron has signed a Joint Operating Agreement for the project.

In the initial phase, Chevron will concentrate on the development of approximately 55,000 acres, the portion where Chevron has leaseholdings in the area known as East Kaybob. Chevron will use its long-term infrastructure development and service agreements with Pembina Pipeline Corp. (NYSE: PBA) and Keyera Corporation for the development of this program. The Company expects that the service from this phase would begin from H2 2019.

Chevron spokesperson also indicated that this project could also lead to further drilling in the other parts of its 330,000-acre leaseholdings. Chevron did not provide any information regarding the expected production or the capital investment that it has budgeted for this program.

Backdrop

Chevron had started the exploration at Duvernay in 2011 followed by drilling of 16 horizontal wells. It completed 13 wells using multi-stage hydraulic fracturing. Later Chevron started a pad drilling program to evaluate well production rates and reservoir performance in H2 2014. Chevron continued to drill in the area through 2016, for appraisal and land retention. By early 2017, the Company had 53 wells which were tied to production facilities.

As per the reports from Canada's national energy regulator, the Duvernay formation is one of Canada's top shale plays and holds the largest marketable resources of unconventional light shale oil and condensate. Canada's oil sands are mainly located in the northern Alberta, however in the investments in the Duvernay and Montney shale basins has risen over time, as shale play offer faster returns and lower capital requirements than the oil sands.

Chevron's development program in Duvernay is a welcome and positive news for the Canadian energy industry, which has been affected by the fall in global crude oil prices in recent years. This has resulted in many industry majors like Royal Dutch Shell PLC, Marathon Oil Corp., and ConocoPhillips selling of their assets in Alberta's oil sands. Chevron too had sold off its gas stations and refinery in British Columbia to Parkland Fuel Corp. in April 2017 in a C$1.46 billion ($1.1 billion) deal.

Pembina Pipeline Corp. Announces Duvernay Infrastructure Development plan

In a related news, PBA made an announcement on the same day, i.e. November 06, 2017, that it will construct and operate the first phase of infrastructure development of the Duvernay Program based on the previously signed 20-year infrastructure development and service agreement with Chevron Canada. PBA has revealed that this would involve a total capital outlay of approximately C$290 million. PBA has also revealed that it expects to ship and process gas and condensate from mid to late 2019.

About Chevron Canada Ltd

Chevron Corp. has been doing business in Canada for over 80 years through its two units Chevron Canada Limited and Chevron Canada Resources. Calgary, Alberta based Chevron Canada Limited has been exploring for, developing, producing and marketing crude oil, natural gas and natural gas liquids since 1938. Chevron Canada assets in Canada include oil sands projects and shale acreage in Alberta, exploration, development and production projects offshore Newfoundland and Labrador, a proposed liquefied natural gas project and shale acreage in British Columbia, and exploration and discovered resource interests in the Beaufort Sea region of the Northwest Territories.

Last Close Stock Review

At the closing bell, on Wednesday, November 08, 2017, Chevron's stock was marginally down 0.49%, ending the trading session at $116.67. A total volume of 5.06 million shares have exchanged hands, which was higher than the 3-month average volume of 5.04 million shares. The Company's stock price advanced 5.96% in the last three months, 9.85% in the past six months, and 8.74% in the previous twelve months. The stock is trading at a PE ratio of 33.99 and has a dividend yield of 3.70%. The stock currently has a market cap of $221.74 billion.

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Source: ACCESSWIRE Investor Awareness (November 9, 2017 - 7:30 AM EST)

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