Midcoast Expands Canadian Operations; Announces Acquisition of Manyberries Pipeline System.Business/Energy Editors HOUSTON--(BUSINESS WIRE)--Jan. 20, 2000 Midcoast Energy Resources Inc. (AMEX AMEX See: American Stock Exchange :MRS MRS - Modifiable Representation System. An integration of logic programming into Lisp. ["A Modifiable Representation System", M. Genesereth et al, HPP 80-22, CS Dept Stanford U 1980]. ) today announced that its subsidiary, Midcoast Canada Energy Services Inc., has entered into a definitive purchase and sale agreement to acquire the Manyberries Pipeline System (&uot;MBPL&uot;) from Triumph Energy Corporation (TSE See Tokyo Stock Exchange. TSE 1. See Tokyo Stock Exchange (TSE). 2. See Toronto Stock Exchange (TSE). :TPH TPH Transplacental hemorrhage ). Midcoast will pay cash consideration of $8.4 million (Canadian), or approximately $5.7 million (U.S.), plus certain future contingent payments based on the actual throughput volumes. Closing is anticipated on or before March 31, subject to receipt of the approvals, consents or other authorizations required by the Investment Canada Act. MBPL MBPL Modular Base Petroleum Laboratory consists of 80 miles of 6&uot; and 10 miles of 4&uot; crude oil pipeline that originates at the Manyberries Oil Field and terminates at an interconnection with the Milk River Pipeline system in southeast Alberta, Canada. Truck terminals, including the Legend terminal, and a significant amount of crude oil storage also contribute to the operations. The system has a design capacity of approximately 21,000 BBLs/day and transports light sour crude oil Sour crude oil contains the impurities hydrogen sulfide (H2S) and carbon dioxide, or mercaptans. All crude oil contains some impurities. When the total sulfide level in the oil is > 1 % the oil is called "sour". from the Manyberries oil field, as well as additional crude oil volumes from the Legend truck terminal. The pipeline system is the only light gravity system in southern Alberta and current volumes are approximately 6,500 BBLs/day. Jim Wright, president of Midcoast Canada, stated, &uot;The purchase of MBPL is an exciting addition to our Canadian operations, which already include the Calmar natural gas gathering pipeline and treating facility in Alberta. MBPL is the sole source of pipeline transportation for crude oil produced in the Manyberries oil field. In addition it is the only non-regulated pipeline and only designated light gravity crude oil pipeline in southeastern Alberta.&uot; Dan Tutcher, president and CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. of Midcoast said, &uot;This acquisition is an important step for Midcoast in our efforts to capitalize on the growing opportunities we see in Canada as production companies increasingly seek to monetize their midstream assets. We are continuing to focus on aggressively seeking further acquisitions and/or joint venture opportunities to complement our existing presence in the Alberta region.&uot; Midcoast is a Houston-based pipeline company with regional offices in Texas, Alabama, Kansas, Louisiana, Mississippi, and Calgary, Alberta. The Company transports, gathers, processes and markets natural gas and other petroleum products through over 80 company-owned pipelines covering approximately 3,800 miles in ten states, the Gulf of Mexico Noun 1. Gulf of Mexico - an arm of the Atlantic to the south of the United States and to the east of Mexico Golfo de Mexico Atlantic, Atlantic Ocean - the 2nd largest ocean; separates North and South America on the west from Europe and Africa on the east and Canada. Statements contained in this release that are not based on historical fact, including those regarding future development activities, are &uot;forward-looking statements&uot; within the meaning of the Private Securities Litigation An action brought in court to enforce a particular right. The act or process of bringing a lawsuit in and of itself; a judicial contest; any dispute. When a person begins a civil lawsuit, the person enters into a process called litigation. Act of 1995 and could involve a number of risks and uncertainties. These risks and uncertainties may cause actual results to differ materially from expected results and are described in detail in the Company's filings with the U.S. Securities and Exchange Commission. |
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