Establishes Operations in Middle East
HOUSTON, June 25 /PRNewswire/ -- Anadarko Petroleum Corporation
(NYSE: APC) announced today that it has entered into an agreement to acquire
Canadian-based Gulfstream Resources Canada Limited (Toronto: GUR) for
C$2.65 per share in cash. The total value of the acquisition is approximately
US$137 million, subject to normal closing adjustments.
(Photo: http://www.newscom.com/cgi-bin/prnh/19990430/ANADARKOLOGO
http://www.newscom.com/cgi-bin/prnh/20010625/HSM057 )
Gulfstream Resources is an international oil and gas exploration and
production company with assets in Qatar and Oman. When the acquisition is
complete, Anadarko will add an estimated 70 million barrels of oil equivalent
(BOE) of proved reserves and 4,700 barrels of oil per day (BOPD) of production
to its worldwide portfolio.
Gulfstream's Board of Directors has unanimously approved the acquisition
agreement. Directors and officers of Gulfstream, holding approximately
5.8 percent of the Gulfstream common shares, have agreed to tender their
shares to Anadarko.
The terms of the agreement reached by Gulfstream and Anadarko are set
forth in a pre-offer agreement. Anadarko intends to mail its offer on or
prior to July 6, 2001. The offer is expected to remain open for 35 days from
the date of mailing. Gulfstream has agreed to discontinue its efforts to seek
and consider strategic alternatives, close its data rooms, not solicit other
proposals, and to provide Anadarko with a right to match competing offers.
Gulfstream will waive the application of its Shareholder Rights Plan to
Anadarko's offer.
Gulfstream has agreed to pay a break fee to Anadarko of C$8 million if the
offer is not completed. Anadarko expects to close the transaction in the
third quarter of this year and will fund the acquisition from cash.
"This acquisition reflects Anadarko's ongoing strategy to realign our
portfolio of projects by buying and selling properties. In this way, we
maximize returns and growth for our shareholders," said John N. Seitz,
Anadarko President and Chief Operating Officer. "A previously announced
property sales program is also under way," he added.
"The Gulfstream properties provide Anadarko with production and
exploration in the Middle East, which offers a world-class petroleum system
with high exploration success rates and low finding and developing costs. It
holds the world's largest future resource for crude oil and natural gas
reserves," Seitz said.
"These properties give us a solid base from which to grow production from
existing fields and from future exploration. We are confident this can be
achieved by applying Anadarko's significant expertise in seismic imaging,
drilling and completion technology and reservoir management," he added.
The agreement with Anadarko, selected over proposals from other parties,
represents the culmination of Gulfstream's comprehensive process to identify
the best opportunity to maximize shareholder value. The process was initiated
on April 15, 2001, after the initial announcement of the ROC Oil Co. offer on
April 2, 2001.
Summary of Gulfstream's Qatar properties
-- Block 12 contains the Al Rayyan field -- currently producing 12,000
BOPD. A recently approved development plan is expected to more than
double field capacity in 2002. Gulfstream holds a 65 percent working
interest in the 19,000-acre block.
-- Block 11 is located south of Al Rayyan and covers 652,000 acres. Two
exploration wells are planned this year for the block. Gulfstream
holds a 49 percent working interest in this block.
-- Block 13 is an exploration block that is on trend with the giant
Dukhan oil field, which has estimated recoverable reserves of
5 billion barrels. Gulfstream has a 65 percent working interest in
Block 13. The boundaries for this 215,000-acre block have recently
been confirmed by the International Court of Justice, and exploration
efforts will commence this year with a comprehensive seismic program.
Summary of Gulfstream's Oman property
-- Block 30 is operated by Gulfstream, with a 100 percent working
interest. Three gas fields are under development and will supply gas
to the Omani government. A long-term sales agreement has been signed,
and production of more than 80 million cubic feet a day is expected by
mid-2002.
Anadarko Petroleum Corporation has proved reserves of more than 2 billion
BOE and reported daily production of 522,000 BOE in the first quarter of 2001.
Domestically, it has operations in Texas, Louisiana, the Mid-Continent and
Rocky Mountain regions, Alaska and the Gulf of Mexico. Internationally, it is
active in Canada, Algeria, Tunisia, West Africa, Venezuela, Georgia and the
North Atlantic.
This news release contains forward-looking statements within the meaning
of Section 27A of the Securities Act of 1933 and Section 21E of the Securities
and Exchange Act of 1934. Anadarko believes that its expectations are based
on reasonable assumptions. No assurance, however, can be given that its goals
will be achieved. See Additional Factors Affecting Business in the
Management's Discussion and Analysis (MD&A) included in the company's 2000
Annual Report on Form 10-K.
SOURCE Anadarko Petroleum Corporation
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http://www.anadarko.com
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CONTACT:
Media, Anne Vincent, 281-876-8368, or Lee
Warren, 281-874-3321, or Investors, Paul Taylor, 281-874-3471, or
David Larson, 281-874-3265, all of Anadarko Petroleum Corporation
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