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Gold/Mining/Energy : Search Energy SGY on the TSE -- Ignore unavailable to you. Want to Upgrade?

To: dwarrior who wrote (5)	7/26/1998 9:36:00 PM
From: Scott Mc	Read Replies (1) \| Respond to of 10

This is an interesting development, I wonder what Petro-Can will do with the shares? If they get to 4000B, should be good for $1.50-2.00 I would think. Scott Search Energy Corp - Petro-Canada subsidiary to be acquired Search Energy Corp SGY Shares issued 28,150,866 1998-07-24 close $0.7 Friday Jul 24 1998 Mr. William Davis reports Search Energy has entered into an agreement to acquire all the shares of 765467 Alberta Ltd., a wholly owned subsidiary of Petro-Canada, in exchange for a minimum of 16.6 million class A shares of Search and $100,000 cash, subject to certain pre and post closing adjustments. Based on recent trading prices of Search shares the cost of this acquisition will be approximately $12.4-million. The transaction will have an effective date of July 1, 1998 and is scheduled to close before Sept. 30, 1998. 765467 Alberta has producing properties and undeveloped lands in Alberta and British Columbia most significantly in the Bezanson area east of Grande Prairie, Alberta and the Klua area in northeastern British Columbia. The petroleum and natural gas reserves of 765467 Alberta were independently evaluated as of Jan. 1, 1998 and were estimated at that time to consist of 24.5 bcf of natural gas and 1,306,000 barrels of crude oil and natural gas liquids on a proven basis. On a proven plus probable basis the reserves were estimated to be 27.1 bcf of natural gas and 1,664,000 barrels of crude oil and natural gas liquids. Also included in the assets of 765467 Alberta is an undeveloped land base of 19,200 net acres with a current value estimated at $1.75-million and a 100 per cent owned and operated natural gas processing facility with a capacity of 20 mmcf/d. Search's proven reserves as of Jan. 1, 1998 and updated internally for reserve additions to date in 1998 are approximately 4,545,000 barrels of oil equivalent. The addition of 765467 Alberta's proven reserves adjusted for production occurring since the evaluation date will represent an increase of 81 per cent to 9,245,000 barrels of oil equivalent. Search believes that the acquisition of 765467 Alberta will provide at least two new focus areas for it, each having significant undeveloped land to fuel future growth by providing many exploration and development opportunities. Search's current daily production of 1,250 barrels of oil and 10 mmcf of natural gas will increase by approximately 450 barrels of oil and 3.5 mmcf of natural gas as a result of the acquisition to a total of 1,700 barrels of oil and 13.5 mmcf of natural gas or 3,050 barrels of oil equivalent per day. Expansion of certain facilities owned by 765467 Alberta combined with Search's continuing drilling program should see production rise to around 4,000 barrels of oil equivalent per day by year-end 1998.