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GULF CANADA RESOURCES CONFIRMS EXEMPTION BY RUSSIAN GOVERNMENT FROM OIL EXPORT TAX

 GULF CANADA RESOURCES CONFIRMS EXEMPTION BY
 RUSSIAN GOVERNMENT FROM OIL EXPORT TAX
 CALGARY, June 25 /PRNewswire/ -- Gulf Canada Resources (AMEX: GOU) today confirmed that it was the first of only two western oil companies to be exempted by the Russian government from the oil export tax. Removal of the tax will allow Gulf to proceed to maximize production levels of the KomiArcticOil joint venture, in which the company holds a 25 percent interest.
 In addition, Gulf announced two financial initiatives which will result in $56 million in cash savings annually. The cash saved will be used to pay down debt and take advantage of the company's investment opportunities in Russia, Indonesia, and Western Canada.
 Gulf will purchase the 55 percent interest in Beaufinco Equipment Holdings Limited which it does not currently own, after which Beaufinco will repay debt of approximately $140 million. This transaction will increase cash generation by approximately $40 million per year. Beaufinco owns the BeauDril northern drilling system assets, which as previously announced were recently mobilized to drill a well for ARCO Alaska in the American Beaufort. This will have an additional positive impact on 1992 cash generation even if only the minimum drilling season is completed.
 Gulf's board of directors also decided to eliminate the dividend on the company's ordinary shares. This will result in an annualized cash saving of $16 million per year.
 These initiatives are further steps in Gulf's on-going strategy to create shareholder value.
 -0- 6/25/92
 /CONTACT: Craig Langpap, 403-233-4341, or John Sparks, 403-233-4049, both of Gulf Canada Resources/
 (GOU) CO: Gulf Canada Resources ST: Alberta IN: OIL SU:


SM -- NY012 -- 3603 06/25/92 08:23 EDT
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Copyright 1992 Gale, Cengage Learning. All rights reserved.

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Publication:PR Newswire
Date:Jun 25, 1992
Words:277
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