PROPERTY DISPOSITION / Union Pacific Resources Group Inc. Sells
Interest in Canadian Caroline-Swan Hill Unit for $110 Million
FORT WORTH, Texas, Nov. 17 /CNW/ -- Union Pacific Resources Group
Inc. (NYSE: UPR) today announced an agreement to sell its interest in the
Caroline-Swan Hills Gas Unit No. 1 and Caroline Gas Facilities in Alberta,
Canada to Newport Petroleum Corporation for approximately $110 million, or
C$165 million. The deal for UPR's 7.917 percent unitized interest in the
exploration and production assets, which is subject to certain customary
conditions, is scheduled to close January 15, 1999 with an effective date of
January 1, 1999.
The Caroline -- Swan Hills sale follows on the sale for approximately
$143 million last month of the original Canadian asset packages included in
the Company's overall deleveraging program announced in April.
"Once again, we have received excellent value for a Canadian upstream
property," UPR Chairman and CEO Jack Messman said. "This transaction is
further proof of the speed and success of our deleveraging effort."
UPR has closed approximately $415 million of property divestitures and
expects to complete an additional $305 million in upstream sales, including
Caroline-Swan Hills, in December and the first quarter of 1999. The sales are
part of the deleveraging program begun after the Company's acquisition of the
Norcen Energy Resources Ltd. earlier this year.
Union Pacific Resources is one of the nation's largest independent oil and
gas exploration and production companies. Based in Fort Worth, Texas, UPR has
been the #1 domestic driller for the past six years and is the #1 gas producer
in the state of Texas.
(Kerm's note: See Newport Petroleum News Release dated 11/17/98) |
