CNOOC takes oil sands stake:
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Press Release Source: CNOOC Limited
CNOOC Ltd. Acquired a Stake in Canada-Based MEG Energy
Tuesday April 12, 1:34 am ET
HONG KONG, April 12 /Xinhua-PRNewswire-FirstCall/ -- CNOOC Limited (the "Company" or "CNOOC Ltd."; NYSE: CEO; SEHK: 883) today announced that the Company, through its wholly owned subsidiary CNOOC Belgium BVBA, has signed an agreement with a Canada based company, MEG Energy Corp. ("MEG") to acquire a 16.69% stake in MEG. The Company paid 150 million Canadian dollars for the stake.
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The Company acquired 13,636,364 common shares of MEG, representing a 16.69% stake at the close of the transaction.
Based in Calgary Canada, MEG is a pure play oil sands company, owning 100% working interest in oil sand leases of 52 contiguous sections (32,900 acres) in Alberta. It is estimated that there are over 4 billion barrels of bitumen in place, with a total recoverable reserves of about 2 billion barrels.
"I am excited with our low cost entry into oil sands, gaining a footstep in this potential area. Lower operating costs and higher recoveries resulting from recent advances in technologies have made many similar projects economically viable," commented Mr. Yang Hua, Chief Financial Officer and Senior Vice President of the Company.
According to The Alberta Energy & Utilities Board, the total bitumen volume in place in Alberta is approximately 1.6 trillion barrels, over 300 billion barrels of which are expected to be recoverable with current technology.
"The investment hits on our focus on long-term growth. At the same time, this move provides a good chance for us to exploit the advanced technology and expertise of oil sand development. These skills may help facilitate the exploitation of oil sand and shale in China, where large reserves of oil sand and shale were found in recent years," Mr. Fu Chengyu, Chairman and CEO of the Company, said.
MEG Energy Corp.
MEG Energy Corp. (MEG) is a private Calgary-based energy company. As to date, MEG owns 100% working interest in oil sand leases covering 52 continuous sections in Alberta, which holds most of Canada's oil sand. MEG's management team has a lot of experience in the development of oil sand.
CNOOC LIMITED - BACKGROUND
CNOOC Limited (the "Company", together with its subsidiaries, the "Group", "the Company" or "CNOOC") -- Incorporated in Hong Kong in August 1999, CNOOC Limited was listed on the New York Stock Exchange ("NYSE") (code: CEO) and The Stock Exchange of Hong Kong Limited ("HKSE") (code: 0883) on 27 and 28 February 2001, respectively. The Company was admitted as a constituent stock of the Hang Seng Index in July 2001.
The Group is China's largest producer of offshore crude oil and natural gas and one of the largest independent oil and gas exploration and production companies in the world. The Company mainly engages in offshore oil and natural gas exploration, development, production and sales.
The Company has four major oil production areas offshore China which are Bohai Bay, Western South China Sea, Eastern South China Sea and East China Sea. It is the largest offshore oil producer in Indonesia. The Group also has certain upstream assets in regions such as Australia.
As at 31 December 2004, the Company owned net proved reserves of approximately 2.2 billion barrels-of-oil equivalent and its annual daily average net production was 382,513 barrels-of-oil equivalent per day.
The Group had 2,524 employees.
CNOOC LIMITED - Relationship with its parent company, CNOOC
CNOOC Limited, incorporated in Hong Kong, is a 70.64% held subsidiary of China National Offshore Oil Corporation ("CNOOC"). CNOOC Limited is the sole vehicle through which CNOOC carries out oil and gas exploration, development, production and selling activities offshore China and internationally.
CNOOC, the parent company, is involved in the administrative, research and services functions for the People's Republic of China's offshore petroleum industry as well as other mid- or down-stream petroleum projects.
This press release contains statements that are not historical facts, including statements about beliefs and expectations of the directors of CNOOC Limited (the "Company"). These forward-looking statements are based on current plans, estimates and projections, and therefore you should not place undue reliance on them. Forward-looking statements speak only as of the date they are made, and the directors of the Company undertake no obligation to update publicly any of them in light of new information or future events. Forward-looking statements involve inherent risks and uncertainties. You are cautioned that a number of important factors could cause actual results to differ materially from those contained in any forward-looking statement. Such factors include, but are not limited to, changes in the PRC economic, political and social conditions as well as government policies.
CONTACT
Mr. Xiao Zongwei
Director of Investor Relations
CNOOC Limited
Tel: +86-10-8452-1646
Fax: +86-10-8452-1441
Email: xiaozw@cnooc.com.cn
Ms. Sharon Fung
Ketchum Newscan Public Relations Ltd
Tel: +852-3141-8082
Fax: +852-2510-8199
Email: Sharon.Fung@knprhk.com
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Source: CNOOC Limited
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