ACQUISITION - MERGERS / Blue Range Resource Corp Labels Big Bear
Exploration Offer as "Unfairly Opportunistic"
CALGARY, Nov. 16 /CNW/ - Blue Range Resource Corporation's Special
Committee of the Board of Directors (the ''Special Committee'') met today to
consider the Big Bear Offer. The Special Committee believes that the Big Bear
Offer is unfairly opportunistic and significantly discounts the value of the
common shares of Blue Range. The Big Bear Offer discounts the value of Blue
Range's assets and prospects and does not reflect the current positive outlook
for natural gas prices. Furthermore, the Big Bear Offer is significantly less
than the $7.51 per share net asset value indicated by its advisor, Maison
Placements Canada Inc., in a report dated September 19, 1998.
The financial advisors to Blue Range, CIBC World Markets and Research
Capital Corporation, have communicated selected information to prospective
parties with a view of soliciting an alternative higher value proposal for
Blue Range. A number of these parties have expressed interest in receiving
Blue Range's confidential information. The data rooms will be opened on
Thursday, November 19, 1998.
Paddock Lindstrom & Associates Ltd., Independent Petroleum Engineers, are
currently updating Blue Range's reserve volumes and values to October 1, 1998.
Paddock Lindstrom, one of the industry's leading engineering consultants and
also the firm that reported on Big Bear's reserves, previously reported on
Blue Range's reserves as at April 1, 1998.
Paddock Lindstrom has already completed an update on the principal
properties owned by Blue Range in the Highway/Beg area of Northeast British
Columbia. Since April 1998, Blue Range has added over 26 bcf of proved
natural gas reserves (29 bcf proven plus probable), resulting from recently
drilled Halfway gas wells. Paddock Lindstrom's updated evaluation for Blue
Range properties in this area is outlined below.
Highway / Beg, B.C. Reserve Reconciliation
------------------------------------------
Natural Gas NGL's BOE
--------------------- --------------------- ---------------------
(bcf) (mbbl) (mboe)
Proved Probable Total Proved Probable Total Proved Probable Total
------ -------- ----- ------ -------- ----- ------ -------- -----
April 1,
1998 87.3 54.8 142.1 1,224 798 2,022 9,954 6,278 16,232
Net
additions 26.4 2.8 29.2 318 61 379 2,958 341 3,299
Production
(April 1
- Sept 30) (2.9) - (2.9) (39) - (39) (329) - (329)
----- ---- ---- ---- ---- ---- ----- ----- -----
October 1,
1998 110.8 57.6 168.4 1,503 859 2,362 12,583 6,619 19,202
----- ---- ---- ---- ---- ---- ----- ----- ------
----- ---- ---- ---- ---- ---- ----- ----- ------
Net Present Values ($mm)
-------------------------------------------------------
Discounted at 10% Discounted at 15%
-------------------------------------------------------
Proved Probable Total Proved Probable Total
------ -------- ----- ------ -------- -----
April 1, 1998 $72.4 $34.7 $107.1 $56.2 $23.9 $80.1
----- ----- ------ ----- ----- -----
----- ----- ------ ----- ----- -----
October 1, 1998 $93.1 $36.5 $129.6 $72.4 $25.1 $97.5
----- ----- ------ ----- ----- -----
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Blue Range is a natural gas exploration, development and production
company based in Calgary, Alberta. The Company concentrates its activities on
liquid-rich natural gas prospects in Central Alberta, Northwest Alberta and
Northeast British Columbia. Blue Range's common shares are listed for trading
on The Toronto Stock Exchange and The Alberta Stock Exchange under the symbol
BBR.A.
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