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Gold/Mining/Energy : Canadian Oil & Gas Companies -- Ignore unavailable to you. Want to Upgrade?

To: SofaSpud who wrote (8121)	4/12/2001 3:48:26 PM
From: Richard Saunders	Read Replies (1) \| Respond to of 24925

sofa - news out re: PSN/KCH. Ketch offering $8.60 cash or 1.3 shares of Ketch + one share in a new co. - "Exploreco" which will still hold Post's Brazeau prospect(s) (sour?). Last trade in PSN before halt was $11 & last trade in KCH was $7.60 Didn't the old Startech SEH-tse end up in a similar way when taken over by a trust? New exploration focused thing there is now IEY-tse Impact. Might be interesting to see how arbs. want to play the trades. News release indicates following re: valuation: The value of the offer for the Post assets excluding Exploreco, based on the $8.60 purchase price, is approximately $200 million. The purchase price includes the assumption of current net debt of approximately $43 million and the purchase of all outstanding options of Post. The production that Ketch is acquiring in the transaction is approximately 5,200 barrels of oil equivalent ("BOE") on a 10:1 basis including 23 mmcf/d of liquids rich natural gas. This implies an acquisition cost of $36,058 per flowing BOE after the deduction of $12.5 million in value for 145,000 net acres of undeveloped land. Based on a review by Ketch and its independent engineers of Post's January 1, 2001 reserves, the acquisition implies a cost of $11.53 per proven BOE of reserves and a cost of $9.24 per established BOE of reserves. "Post is an exceptional strategic fit for Ketch in our Morinville area in central Alberta" stated Ketch President and CEO, Grant Fagerheim. "Post provides Ketch with both additional exploitation opportunities as well as long term growth prospects and a strong production and cash flow base from which to grow. Current production of the combined company is 10,800 BOE/d and combined proven reserves as at January 1, 2001 total approximately 29 mmboe." Info. mentioned re: new exploration company ("Exploreco") that will be spawned: Exploreco through a related partnership will own approximately 90% of Post's current assets in the Brazeau area. This includes approximately 6,800 acres of land and five wells. None of these wells are producing at this time. Exploreco through the related partnership will also have an interest in Post's assets in the Deanne, Ricinus, Ferrier and Caroline areas as part of a partnership with Ketch. These areas include approximately 28,000 acres of undeveloped land with significant deep gas exploration potential and four producing gas wells. Certain members of the current Post management team will be the management of Exploreco. Probably not what some PSN shareholders were expecting?......