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Gold/Mining/Energy : ARAKIS: HIGH RISK OIL PLAY (AKSEF) -- Ignore unavailable to you. Want to Upgrade?

To: Robert Meany who wrote (7373)	12/4/1997 12:43:00 PM
From: Tomas	Read Replies (1) \| Respond to of 9164

Lundins move to unify holdings By PETER KENNEDY Vancouver Bureau The Financial Post Thursday, December 4, 1997 The Lundin family yesterday moved to consolidate its resource holdings by formally launching Sands Petroleum AB's bid for 100% of International Petroleum Corp. IPC chairman Adolf Lundin said in an interview a takeover bid for Arakis Energy Corp. may not be far behind. "We are very interested in Arakis,'' he said, adding his group already owns about 10% of the Calgary-based company which is developing a $1-billion oil project in the Sudan. While plans to take control of Arakis are not necessarily imminent, "we would like to own as much of the company as we can.'' Meanwhile, the Lundins are ready to combine Stockholm-based Sands Petroleum and IPC into a single entity with a market cap of about $600 million. They aim to become a sizeable player in the global oil business. The immediate goal is to boost net daily oil production of 15,400 barrels from fields in Britain and Malaysia to more than 43,500 by the end of 1999. The companies are also active in Libya, Tanzania and the Falkland Islands. "We are really building a much larger, stronger company,'' said Lundin, also chairman of Sands. His group will own about 30% of a combined entity to be called Lundin Oil AB. Sands is bidding for all of IPC's 44 million shares outstanding, including those represented by Swedish Depositary Receipts. The offer consists of one series B share of Sands for every 1.15 share of IPC. IPC shares (IRP/TSE) closed up 15« at $5.55 yesterday, well below the 52-week high of $8.55. The offer is subject to conditions, including shareholder approval and 90% of the IPC shares not already held by Sands and its affiliates being tendered to the bid. The offer expires Dec. 23. The Lundin group, which specializes in developing grassroots projects in risky areas before bringing in large international partners, has agreed to tender all its 8.9 million IPC common shares to the offer. The companies said an independent committee of IPC directors is recommending shareholders accept the bid.