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NOVA CORP. SELLING ALBERTA GAS SUBSIDIARY TO SEAGULL ENERGY OF HOUSTON

 CALGARY, Alberta, Nov. 19 /PRNewswire/ -- NOVA Corporation of Alberta announced today that it has reached an agreement to sell its indirect, wholly owned subsidiary Novalta Resources Inc. to Seagull Energy Corp, of Houston, for cash proceeds of approximately $275 million (Cdn), subject to customary purchase price adjustments.
 The transaction is subject to the approval of the board of directors of Seagull Energy. Seagull's board is convening a special meeting early today (Friday, Nov. 19).
 The transaction is expected to close early in January 1994. NOVA expects to record a gain of $120 million on the sale.
 NOVA is selling Novalta as part of an effort to focus on its core businesses in natural gas services and petrochemicals. NOVA also perceives the current environment for selling natural gas properties as favorable; this perception spurred the timing of the divestment decision.
 "We're pleased to conclude the transaction so quickly, and pleased to record a gain on the sale," said Terry Poole, NOVA senior vice president. "The high level of interest in Novalta speaks well of the company's high-quality resources and people." Seagull Energy expects to retain most of Novalta's 69 employees.
 NOVA announced its intention to sell Novalta, an Alberta-based natural gas production company, in September 1993. At the time, NOVA noted the value of Novalta as a partial hedge against increases in natural gas feedstock costs for NOVA's Alberta-based petrochemicals businesses. "We're satisfied that this sale fully achieves our objective of capturing that hedge value for NOVA's shareholders," said Poole.
 Novalta has proven gas reserves before royalties of 364 billion cubic feet (estimated at July 1, 1993). In the first six months of 1993, Novalta's average gas production was 70 million cubic feet per day. Novalta also has estimated proven oil and gas liquids reserves totalling 4.6 million barrels.
 -0- 11/19/93
 /NOTE TO EDITORS AND ANALYSTS: Spokespersons from NOVA Corporation and Seagull Energy Corp. will be available by teleconference at noon, Calgary time (MST) today (Friday, Nov. 19) for questions regarding the sale of Novalta Resources Inc.
 Teleconferencing services are being provided by Confertech Canada in Vancouver, British Columbia. Call the Confertech operator just before noon at 604-257-3000 to participate in the teleconference.
 Spokespersons: A.T. (Terry) Poole, senior vice president, Corporate Development, NOVA Corporation of Alberta; Barry J. Galt, chairman and chief executive officer, Seagull Energy Corp./
 /CONTACT: A.T. (Terry) Poole, senior VP-Corporate Development, 403-290-7714; or P.J. (Jeff) Flood, public affairs, 403-290-7657/
 (NVA.)


CO: NOVA Corporation of Alberta; Seagull Energy Corp.;
 Novalta Resources Inc. ST: Alberta, Texas IN: OIL SU: TNM


JL -- NYON3 -- 6357 11/19/93 05:45 EST
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Publication:PR Newswire
Date:Nov 19, 1993
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