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Gold/Mining/Energy : KERM'S KORNER -- Ignore unavailable to you. Want to Upgrade?

To: SofaSpud who wrote (11381)	6/22/1998 6:43:00 PM
From: SofaSpud	Read Replies (1) \| Respond to of 15196

CORP. TOP 20 LISTED / PetroCan gives up on Ultramar JV PETRO-CANADA AND ULTRAMAR DIAMOND SHAMROCK WITHDRAW COMPETITION BUREAU APPLICATION ÿÿÿ CALGARY, June 22 /CNW/ - Petro-Canada and its partner Ultramar Diamond Shamrock Corporation (''UDS'') announced today that they are withdrawing their application to the Government of Canada's Competition Bureau to form a refining and marketing joint venture in Canada and the northern U.S., and that they are ending talks to form the joint venture. ÿÿÿ The two companies announced January 6 that they had signed a memorandum of understanding to form such a joint venture. ÿÿÿ In a joint statement, Petro-Canada President and Chief Executive Officer Jim Stanford and UDS Chairman and CEO Roger Hemminghaus said, ''In light of the serious concerns raised by the Competition Bureau, it was apparent that the review process was going to be lengthy and expensive, with an uncertain outcome.ÿ We believe that this potentially damaging delay would not serve the interests of our shareholders, our customers or our employees.ÿ Therefore, we are concluding the process at this time.'' ÿÿÿ ''We will continue to pursue opportunities to work together on commercial transactions,'' Stanford and Hemminghaus added. ÿÿÿ Stanford remains very positive about the prospects for Petro-Canada's downstream business, both in 1998 and in the future. ''All of our efforts in the downstream over the last few years have paid off with excellent financial results.ÿ Having achieved record earnings in 1997, we will continue as a management team to seek innovative approaches to enhance value in all of our core businesses.ÿ And Petro-Canada employees will continue to demonstrate the high performance which has driven our downstream as well as our upstream success.'' ÿÿÿ Coincident with the announcement of the joint venture in January 1998, Petro-Canada has undertaken a reorganization of its downstream administration, which is expected to result in savings of approximately $20 million per year, beginning immediately.ÿ A one-time cost of approximately $42 million after tax will be recorded by Petro-Canada in the second quarter of 1998, as a result of the activities related to the downstream restructuring. ÿÿÿ Petro-Canada is one of Canada's largest oil and gas companies, operating in both the upstream and the downstream sectors of the industry. Its common and variable voting shares trade on Canadian exchanges under the symbol PCA, and its variable voting shares trade on the New York Stock Exchange under the symbol PCZ. ÿÿÿ -0-ÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿ 06/22/98 For further information: INVESTOR AND ANALYST ENQUIRIES: John Skelton, Investor Relations, (403) 296-4040; MEDIA AND GENERAL ENQUIRIES: Robert Andras, Corporate Communications, (403) 296-8586; INTERNET SITE: www.petro-canada.ca