This is an interesting development, I wonder what Petro-Can will do with the shares? If they get to 4000B, should be good for $1.50-2.00 I would think. Scott
Search Energy Corp -
Petro-Canada subsidiary to be acquired
Search Energy Corp
SGY
Shares issued 28,150,866
1998-07-24 close $0.7
Friday Jul 24 1998
Mr. William Davis reports
Search Energy has entered into an agreement to acquire all the shares of 765467
Alberta Ltd., a wholly owned subsidiary of Petro-Canada, in exchange for a
minimum of 16.6 million class A shares of Search and $100,000 cash, subject to
certain pre and post closing adjustments. Based on recent trading prices of Search
shares the cost of this acquisition will be approximately $12.4-million. The
transaction will have an effective date of July 1, 1998 and is scheduled to close
before Sept. 30, 1998.
765467 Alberta has producing properties and undeveloped lands in Alberta and
British Columbia most significantly in the Bezanson area east of Grande Prairie,
Alberta and the Klua area in northeastern British Columbia. The petroleum and
natural gas reserves of 765467 Alberta were independently evaluated as of Jan. 1,
1998 and were estimated at that time to consist of 24.5 bcf of natural gas and
1,306,000 barrels of crude oil and natural gas liquids on a proven basis. On a
proven plus probable basis the reserves were estimated to be 27.1 bcf of natural
gas and 1,664,000 barrels of crude oil and natural gas liquids. Also included in the
assets of 765467 Alberta is an undeveloped land base of 19,200 net acres with a
current value estimated at $1.75-million and a 100 per cent owned and operated
natural gas processing facility with a capacity of 20 mmcf/d.
Search's proven reserves as of Jan. 1, 1998 and updated internally for reserve
additions to date in 1998 are approximately 4,545,000 barrels of oil equivalent.
The addition of 765467 Alberta's proven reserves adjusted for production
occurring since the evaluation date will represent an increase of 81 per cent to
9,245,000 barrels of oil equivalent.
Search believes that the acquisition of 765467 Alberta will provide at least two
new focus areas for it, each having significant undeveloped land to fuel future
growth by providing many exploration and development opportunities.
Search's current daily production of 1,250 barrels of oil and 10 mmcf of natural
gas will increase by approximately 450 barrels of oil and 3.5 mmcf of natural gas
as a result of the acquisition to a total of 1,700 barrels of oil and 13.5 mmcf of
natural gas or 3,050 barrels of oil equivalent per day. Expansion of certain
facilities owned by 765467 Alberta combined with Search's continuing drilling
program should see production rise to around 4,000 barrels of oil equivalent per
day by year-end 1998. |
