ACQUISITION / Dominion Energy completes acquisition of Archer Resources
RICHMOND, Va., April 22 /CNW/ -- Dominion Energy Inc. announced
today that it has completed its purchase of Archer Resources Ltd., a publicly
traded natural gas exploration and production company headquartered in
Calgary, Alberta, Canada.
Dominion Energy, the natural gas and competitive power subsidiary of
Dominion Resources Inc. (NYSE: D), acquired 100 percent of outstanding shares
for US$119 million early today. The company also assumes US$26 million in
Archer's debt.
Archer begins operations under its new ownership as Dominion Energy Canada
Ltd.
"This addition to our growing portfolio of natural gas interests should
boost our North American natural gas production capability by 50 percent and
expands our North American reserves by 40 percent. It places our company
among America's 30 largest independent natural gas companies," Thomas N.
Chewning, president and chief executive officer, said.
Dominion Energy now estimates that its daily natural gas production totals
more than 250 million cubic feet equivalent. The company's proven reserves
now total more than 650 billion cubic feet equivalent.
"Archer fits well with Dominion Energy's long-term growth strategy and is
a logical addition to our family of businesses. We have acquired significant
future drilling potential and an excellent platform for growth into our third
core area of operations in addition to Michigan and the Appalachian Basin.
We're also gaining an experienced, compatible management team and employee
group that has created consistent profitability and strong financial
performance while maintaining a low cost structure," Chewning added.
Archer employs 75 people.
In addition to its natural gas businesses, Dominion Energy has ownership
and operating interests in 25 competitive power facilities throughout the U.S.
and Latin America.
Its parent company, Dominion Resources, is a $20 billion holding company
headquartered in Richmond, Va.
The initial offer occurred on March 11 when Dominion Energy announced that
it would make an offer of about US$128 million. The final US$119 million
purchase price reflects decisions by Archer employees to exercise options
prior to Dominion Energy's acquisition.
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