CS Resources Limited - Announcement.CALGARY Calgary (kăl`gərē), city (1991 pop. 710,677), S Alta., Canada, at the confluence of the Bow and Elbow rivers. The largest city in Alberta and the fastest-growing major city in Canada, Calgary is a corporate, transportation, and financial , ALBERTA--(BUSINESS WIRE)--June 18, 1997--CS Resources Limited(TSE See Tokyo Stock Exchange. TSE 1. See Tokyo Stock Exchange (TSE). 2. See Toronto Stock Exchange (TSE). ;ME CRZ CRZ Cruise CRZ Contamination Reduction Zone CRZ Chirped Return to Zero CRZ Close Reconnaissance Zone CRZ Controlled-Reaction Zone CRZ Compact Renaissance Zero ) CS Resources Limited ("CS Resources") today announced that its Board of Directors has unanimously reached an agreement with PanCanadian Petroleum Limited ("PCP PCP abbr. 1. phencyclidine 2. primary care physician Pneumocystis carinii pneumonia (PCP) ") under which PCP will make a cash offer of $16.00 per share, amounting to a total of $465 million for all of the issued and outstanding common shares of CS Resources. Prior to agreeing to the offer, CS Resources and PCP were engaged in strategic discussions, which had begun before the approach by Gulf Canada Canada (kăn`ədə), independent nation (2001 pop. 30,007,094), 3,851,787 sq mi (9,976,128 sq km), N North America. Canada occupies all of North America N of the United States (and E of Alaska) except for Greenland and the French islands of Resources and its recently announced offer. These discussions with PCP were advanced to the stage where a commitment to a significant equity investment in CS Resources was ready to be made. However, after extensive negotiations and review of various strategic alternatives, the Board of Directors believed that in the prevailing market, it would be difficult to fashion a strategic alliance that could meet the original pre-existing Adj. 1. pre-existing - existing previously or before something; "variations on pre-existent musical themes" pre-existent, preexistent, preexisting antecedent - preceding in time or order commercial intentions of the parties and to provide immediate cash value to the CS Resources shareholders. The Directors concluded that the agreement with PCP would provide significantly greater value than any other known alternative. The PCP offer represents a 41.6 percent premium to the CS Resources share price prior to any announced offer to purchase CS Resources shares and represents a high premium to other completed transactions involving oil and gas assets. The offer has the unanimous support of the Boards of Directors of PCP and CS Resources. CS Resources has agreed to pay PCP a non-completion fee of three percent in certain circumstances CIRCUMSTANCES, evidence. The particulars which accompany a fact. 2. The facts proved are either possible or impossible, ordinary and probable, or extraordinary and improbable, recent or ancient; they may have happened near us, or afar off; they are public or and has agreed not to solicit other transaction proposals. In keeping with its responsibilities, the Board of Directors will entertain unsolicited un·so·lic·it·ed adj. Not looked for or requested; unsought: an unsolicited manuscript; unsolicited opinions. unsolicited Adjective offers which CS Resources and its advisors determine would be more favourable to the company and its shareholders than the PCP offer. PCP would have the right to match or better any such superior alternative. "We believe that PCP's offer will be highly attractive to our shareholders and is certainly a fair price", said Dennis Sharp Dennis Sharp (b. 1933) is a British architect, professor, curator, historian, author and editor. Dennis Sharp studied at Bedford Modern School (1945-1951) and at Luton School of Art (1951-1954). , Chairman and Chief Executive Officer of CS Resources. Further to the Company's press release on June June: see month. 4, 1997, the evaluation of the CS Resources crude oil and natural gas reserves has been completed. The crude oil and natural gas reserves have been evaluated by Paddock paddock a fenced field or enclosure. joining paddock used for mating. Lindstrom Lindstrom, Lindstrøm, or Lindström can refer to
n. See hellgrammite. [Probably from the name Dobson.] Noun 1. dobson - large brown aquatic larva of the dobsonfly; used as fishing bait hellgrammiate Resource Management, independent engineering firms. The effective date of the evaluation is June 1, 1997 and represents an update from the evaluation of the Company's reserves as at December 31, 1996. The proven and probable reserves, and changes thereon there·on adv. 1. On or upon this, that, or it. 2. Archaic Following that immediately; thereupon. Adv. 1. thereon - on that; "text and commentary thereon" on it, on that between the respective report dates are listed below:
CRUDE OIL RESERVES (mmbbls)
--------------------------------------------------------------
June 1 December 31 Change
1997 1996 June 1-Dec. 31
--------------------------------------------------------------
Proven producing 25.0 26.9 (1.9)
Proven undeveloped 53.0 43.8 9.2
Probable risked at
50 percent 53.8 14.7 39.1
--------------------------------------------------------------
Total 131.8 85.4 46.4
--------------------------------------------------------------
NATURAL GAS RESERVES (bcf)
--------------------------------------------------------------
June 1 December 31 Change
1997 1996 June 1-Dec. 31
--------------------------------------------------------------
Proven producing 22.2 35.9 (13.7)
Proven undeveloped 14.7 1.0 13.7
Probable risked at
50 percent 6.7 6.7 -
--------------------------------------------------------------
Total 43.6 43.6 -
--------------------------------------------------------------
The pre-tax values of the crude oil and natural gas reserves as of June 1, 1997 and December 31, 1996, with the future cash flows discounted at rates of 15 percent and 20 percent are listed below:
PRE-TAX PRESENT WORTH OF RESERVES ($millions)
--------------------------------------------------------------
June 1, 1997 December 31, 1996 Change
15 20 15 20 15 20
percent percent percent percent percent percent
--------------------------------------------------------------
Proven
Producing $176.8 $155.0 $206.2 $180.2 ($29.4) ($25.2)
Non producing 188.6 142.0 106.0 79.4 82.6 62.6
Less abandonment
cost (5.0) (3.6) (5.0) (3.6) - -
--------------------------------------------------------------
Total proven $360.4 $293.4 $307.2 $256.0 $53.2 $37.4
--------------------------------------------------------------
Probable risked
at 50 percent $167.7 $112.6 $64.9 $48.3 $102.8 $64.3
--------------------------------------------------------------
Total proven
plus risked
probable $528.1 $406.0 $372.1 $304.3 $156.0 $101.7
--------------------------------------------------------------
Total Company proven and risked probable crude oil reserves Oil reserves refer to portions of oil in place that are claimed to be recoverable under economic constraints. Oil in the ground is not a "reserve" unless it is claimed to be economically recoverable, since as the oil is extracted, the cost of recovery increases incrementally increased 7.3 and 39.1 million barrels, respectively, as of June 1, 1997 in comparison to December 31, 1996. The most significant changes in the reserves and their respective values are due to the Company's activities and the development of infrastructure in the Pelican Lake area this past winter. These developments were outlined in the Company's press release dated June 4, 1997. Proven and risked probable crude oil reserves at Pelican Lake as of June 1, 1997 were 51.9 and 34.0 million barrels, respectively. The present values of the Company's proven and risked probable reserves discounted at 15 and 20 percent as of June 1, 1997 were $528.1 million and $406.0 million, respectively. This represents respective increases of $156.0 million and $101.7 million in comparison to the values as of December 31, 1996. This increase in value is attributable to an accelerated development drilling program and the recognition of probable reserves in the Pelican Lake area. CONTACT: CS Resources Limited Dee A. Parkinson Par·kin·son , James 1755-1824. British physician who gave (1817) a comprehensive description of paralysis agitans, or Parkinson's disease, and was the first to recognize (1812) perforation of the appendix as a cause of death in appendicitis. , 403/ 260-6100 403/ 260-6191 (FAX) or CS Resources Limited George A. Crookshank, 403/ 260-6100 403/ 260-6191 (FAX) |
|
||||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion