Bloomberg Energy: Sweden's Lundin Oil in Talks to Take Over Canada's Red Sea Oil
By Beate Schjolberg
Stockholm, Jan. 17, 11.20am EST (Bloomberg) --
Lundin Oil AB, a Swedish oil company, said it's in talks to
take over Canada-based Red Sea Oil Corp. in an effort to
expand its presence in Libya.
Lundin, which already owns 58 percent of RSO, will probably
offer to buy the remaining shares for newly issued Lundin stock,
the company said. RSO has a market value of C$88.3 million ($61
million), while Lundin is valued at 2.1 billion Swedish kronor
($250 million). Terms of the offer are expected to be announced by
the end of February.
RSO's main asset is a 60 percent stake in the NC177 area in
Libya, where the company is operator. Lundin owns the remaining 40
percent of the area, which includes the undeveloped oil fields En
Naga North and West.
``The combination of Lundin and RSO is a logical
development,' said Ian Lundin, president of Lundin Oil. ``The
greater financial capacity of Lundin Oil to raise project
financing should ensure that the En Naga North development can
proceed.'
Lundin added 2.3 kronor, or 9.6 percent, to 26.2. RSO climbed
C$0.15, or 14 percent, to C$1.25 on the Canadian Venture Market.
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