Doesn't look like bad deal.
NW
Conoco (U.K.) Limited Increases North Sea Assets Portfolio
PR Newswire - December 16, 1998 09:36
ABERDEEN, Scotland, Dec. 16 /PRNewswire/ -- Conoco (U.K.) Limited (CUKL), the U.K. exploration and production affiliate of Conoco Inc. (NYSE: COC), has signed agreements that will substantially increase its holdings in the U.K. sector of the Southern North Sea and enhance the company's portfolio of natural gas assets in a core business area.
CUKL has agreed to purchase Canadian Petroleum U.K. Limited (CPUKL), the British subsidiary of Canadian Occidental Petroleum Ltd. (Amex: CXY; Toronto; Montreal) of Alberta, Canada. The acquisition includes CPUKL's interest in three producing gas fields, Caister (30%), Vulcan (7.88%) and South Valiant (12.5%). The acquisition will increase Conoco's interest in all three fields. After the sale is complete, Conoco will own a 50-percent interest in both the Vulcan and South Valiant fields, which it already operates, and a 30-percent interest in the Caister field.
Conoco also will acquire an additional 15-percent interest in the Caister Murdoch System gas pipeline and a 10-percent interest in the Esmond Transportation System gas pipeline. Conoco's ownership of the Caister Murdoch System will increase to 42.25 percent.
The agreement also includes the purchase of a number of long-term gas supply contracts and CPUKL's interest in four discoveries and three exploration blocks.
Proved reserves included in the acquisition total 83 billion cubic feet of gas and production averaging about 35 million cubic feet of gas per day.
"Through this acquisition, CUKL is strengthening its existing asset base in the North Sea at competitive prices and continuing Conoco's long- standing efforts to upgrade its assets portfolio," said George Watkins, CUKL managing director. "It's a win-win for both companies, allowing each the opportunity to focus resources on developing higher-valued natural gas assets and build for long-term business growth."
Conoco is a major, integrated energy company based in Houston and active in 40 countries.
SOURCE Conoco Inc.
/CONTACT: Keith Webster of Conoco (U.K.) Limited, Aberdeen,
44-1224-205-315/
/Web site: conoco.com
(COC CXY)
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