IN THE NEWS / JP Bryan Quits Canadian 88 Energy
'The boys were not compatible,' observer says of ill-fated pact with firm's president
Monday, December 7, 1998
BRENT JANG
Alberta Bureau - The Globe & Mail
Flamboyant Texas oil man J.P. Bryan has resigned as chairman of Canadian 88 Energy Corp. just 10 weeks after he joined forces with company president Gregory Noval.
The two hunting buddies, who had envisaged doubling Canadian 88's assets to $1-billion, severed their corporate ties after Mr. Bryan's decision to step down from the natural gas producer's board of directors.
"The boys were not compatible," one of Mr. Bryan's friends said yesterday.
Another observer wondered why the two strong-willed entrepreneurs ever got together in the first place because they have a long history of wanting to call their own shots.
In a statement, Canadian 88 said it "wishes Mr. Bryan all the best in his other business endeavours," but didn't explain why he resigned.
About a week ago, the Calgary-based company issued a press release with its quarterly results that praised Mr. Bryan as someone "who needs no introduction" and welcomed him back to Canada's oil patch.
James Raymond, a Montreal-based investment banker, has resumed his duties as Canadian 88's chairman -- a position he held for six years before Mr. Bryan's appointment in late September.
Mr. Raymond stayed on as a director with the reduced role of vice-chairman when Mr. Bryan took over as chairman.
Ian Doig, publisher of Calgary-based energy newsletter Doig's Digest, said yesterday that Mr. Bryan's abrupt exit from Canadian 88 indicates some fuzzy employment arrangements should have been clarified.
"He lost out, but there weren't very good ground rules in place as to what he was supposed to be doing and why he was there," Mr. Doig said.
The weekend announcement marks the latest chapter in a stormy year for Mr. Bryan, who was ousted as chief executive officer of Gulf Canada Resources Ltd. in February after three years at the helm.
The acquisition-hungry Mr. Bryan had sought to postpone paying off Gulf's massive debt load, but since his departure, the Denver-based company has embarked on wide-ranging program of layoffs, asset sales and cuts to oil and gas production.
He had earned the admiration of some Canadians and angered others in 1995 when he suggested that Quebec separatists should either start their own country or go back to France in a boat.
After he left Gulf, Mr. Bryan provided investment banking advice to undisclosed clients in Houston, including some that are interested in making energy investments in Canada.
As well, he is vice-chairman of Torch Energy Advisors Inc., a Houston-based investment group in which he is a director and a member of the executive committee.
Neither Mr. Bryan nor Mr. Noval, who is Canadian 88's chief executive officer, could be reached yesterday.
Mr. Noval also has been a controversial figure in the oil patch. He attracted unwanted publicity last year when he faced allegations of breaching securities rules in connection with Canadian 88's failed offer to acquire Morrison Petroleums Ltd.
He agreed to a settlement with regulators in October, 1997, that included a one-year trading ban and a $200,000 penalty.
Mr. Noval touted Mr. Bryan as a hands-on chairman who would be responsible for expanding Canadian 88's holdings through acquisitions "at a pivotal time" and "add momentum to our growth."
Shares in Canadian 88 gained 5 cents Friday to $5.10 on the Toronto Stock Exchange. That would give it a stock market value of almost $530 million.
The company, which specializes in deep natural gas wells in Alberta's Foothills, confirmed on the weekend that it has budgeted $170-million on capital spending in Western Canada for the rest of this year and 1999.
Canadian 88 said it hopes to take advantage of lower costs for land and oil field services -- the result of reduced demand brought on by slumping commodity prices.
Last month, Canadian 88 disclosed it had changed its auditors to KPMG Inc., saying the resignation of the former auditors, Brown Smith Owen, arose at the energy company's request.
Canadian 88 earned $79,000 in its third quarter, compared with $1.7 million a year earlier. Revenue slipped to $15.5 million from $18.5 million.
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