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Gold/Mining/Energy : KOB.TO - East Lost Hills & GSJB joint venture -- Ignore unavailable to you. Want to Upgrade?

To: Bearcatbob who wrote (4579)	9/9/1999 9:31:00 PM
From: Dave E.	Respond to of 15703

Here we go Boys & Girls!: Westminster Resources stock jumps on takeover talk CALGARY, Sept 9 (Reuters) - Shares in small Canadian oil firm Westminster Resources Ltd. (Toronto:WML.TO - news), known for its stake in a much-watched natural gas play in California, jumped on Thursday on speculation it could be a takeover target. Calgary-based Westminster, which has a stake in the East Lost Hills gas prospect near Bakersfield, California, climbed C$1.20, or more than 20 percent, to C$7.80 on heavy turnover of nearly 2.3 million shares in Toronto. The stock soared as high as C$9 earlier in the session. Like all of the companies involved in the gas play, which gained the attention of industry-watchers last November when it suffered a violent blowout then spewed gas into the sky for six months, Westminster's stock has risen steadily on hopes that the San Joaquin Basin prospect could reveal a major deposit. However, rumors circulated on Thursday that the company could be in the sights of Berkley Petroleum Corp. (Toronto:BKP.TO - news), which is operator of the tricky East Lost Hills play on behalf of a seven-company consortium. Fueling the speculation on Thursday was news from Berkley that it planned to offer 7.7 million shares at C$16.35 each in a public offering valued at C$125.5 million. Berkley's stock was halted in Toronto for that announcement. Berkley, which joins a growing list of Canadian oil companies recently issuing stock in the current buoyant market, closed off 25 Canadian cents to C$16.20 after resuming trade on Thursday. It said it would use proceeds from the offering to fund an expanded exploration, development and acquisition program. Sources said Westminster was finding itself short of the funding necessary to bring East Lost Hills to fruition. The partners began drilling a relief well there earlier this year and was in the process of drilling a third well in hopes of unlocking major gas reserves. At the current price, Westminster's market value is just over C$201 million. It also has C$55 million of long-term debt and working capital deficiencies. Officials at Westminster and Berkley were not available for comment.