MERGERS-ACQUISITIONS / TARRAGON AND MARATHON OIL COMPANY
TSE, ME SYMBOL: TN
JUNE 29, 1998
Tarragon & Marathon Completes Formal Documentation of
Acquisition
CALGARY, ALBERTA and HOUSTON, TEXAS--Tarragon Oil and Gas Limited
and Marathon Oil Company announced today that formal documentation
has been completed between Tarragon and Marathon for the
acquisition by Marathon of the outstanding securities of Tarragon
by Plan of Arrangement. Under the terms of the transaction,
securityholders of Tarragon will receive Cdn $14.25 cash for each
Tarragon common share, or at the option of the holder,
exchangeable shares of equivalent value issued by a wholly-owned
Canadian subsidiary of Marathon that are exchangeable into shares
of USX-Marathon Group common stock (NYSE symbol: MRO), or a
combination of the foregoing (subject to a maximum 90 percent of
the total consideration being paid in exchangeable shares).
Subject to court confirmation, a Tarragon securityholders' meeting
is expected to be called for mid-August 1998, to approve the
transaction. An Information Circular will be mailed to all
securityholders approximately one month prior to the meeting.
In addition to shareholder approval, the transaction is subject to
a number of other customary conditions, including certain
regulatory approvals and court approval.
Tarragon is a Canadian exploration and production company, whose
common shares trade on The Toronto Stock Exchange and The Montreal
Exchange under the symbol TN.
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