Ultra Holdings to vote against Pendaries acquisition
Ultra Holdings Inc UPH
Shares issued 8,790,935 Nov 30 close $2.09
Thu 30 Nov 2000 News Release
Mr. Brad Carr reports
Ultra Holdings attends to vote its shares in Ultra Petroleum Corp. (Ultra)
against Ultra's proposed acquisition of Pendaries Petroleum Ltd.
(Pendaries), at the extraordinary general meeting on Dec. 15, 2000. In
reaching this decision, UHI considered a number of factors, including the
following:
Ultra's existing interests in the Green River Basin, Wyom. and the
potential for further development of these interests at a time when North
America is experiencing its strongest market for natural gas ever;
In the context of this market, the potential to identify and acquire
additional natural gas assets in North America, where Ultra's management
and key personnel are most experienced and where Ultra has developed key
relationships;
The acquisition cost of the Pendaries transaction, being 15 million shares
of Ultra having a market value of approximately $60-million at current
trading prices;
The estimated capital expenditure of $90-million (U.S.) or more over three
years to develop Pendaries' Bohai field, in the context of Ultra's
projected available cash, and the effect such an expenditure may have on
Ultra's ability to expand its North American interests;
The timeline for the development of the Bohai Field, with little or no
prospect for production before 2003;
Ultra's size and resources as compared with the other players in the Bohai
project; Kerr McGee for example will risk less than 4 per cent of its
yearly revenue on the Bohai Field; and
The vagaries associated with investing significant capital in the People's
Republic of China,
UHI owns 13.23 million shares of Ultra, representing approximately 23 per
cent of the issued and outstanding shares of Ultra. |
