Printer Friendly

GULF TO INCREASE CAPITAL INVESTMENT PROGRAM

 CALGARY, June 24 /PRNewswire/ -- Gulf Canada Resources Limited (AMEX: GOU) today announced that as a result of favorable cash flow from operations and significant progress on its asset sale program, its board of directors has approved an increase of up to $30 million to the company's Western Canada capital program.
 The company announced in March that it intended to sell producing and non-producing assets expected to yield $400 million for debt reduction. To date, Gulf has completed the sale of its interests in Home Oil Company Limited and has completed a purchase and sale agreement regarding its properties in southeast Saskatchewan, which together total approximately $210 million. In addition, Gulf has letters of intent or agreements in principle totaling approximately $200 million. These include the sale of interests in the Kulluk drilling unit, the remaining 38 per cent interest in the Nevis gas plant, the Caroline override, and several producing properties included in a recent offering coordinated by Waterous Securities Inc.
 "As a result of higher cash flows due to stronger gas prices and because we expect to surpass the $400 million target, management recommended that the Board consider re-investing the surplus in some of our growth opportunities in Western Canada, and they agreed," said Chuck Shultz, Gulf president and CEO.
 The asset sales and re-investment programs are consistent with Gulf's commitment to restore its investment-grade credit rating and increase shareholder value in the long term. Gulf is examining further options in connection with its debt reduction and recapitalization program for discussion with its shareholders and lenders.
 -0- 6/24/93
 /CONTACT: Gary Sherkey, manager, investor relations, 403-233-4341, or John Sparks, manager, public affairs, 403-233-4049, both of Gulf Canada Resources Limited/
 (GOU)


CO: Gulf Canada Resources Limited ST: Alberta IN: OIL SU: ECO

TM -- NY088 -- 5551 06/24/93 19:40 EDT
COPYRIGHT 1993 PR Newswire Association LLC
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 1993 Gale, Cengage Learning. All rights reserved.

Article Details
Printer friendly Cite/link Email Feedback
Publication:PR Newswire
Date:Jun 24, 1993
Words:302
Previous Article:SONY MUSIC ENTERTAINMENT INC. NAMES ROBERT BOWLIN TO TWO NEW POSTS
Next Article:JOY TECHNOLOGIES REPORTS FIRST QUARTER RESULTS
Topics:


Related Articles
GULF TURNAROUND CONTINUES
EQUITABLE RESOURCES SETS $151 MILLION CAPITAL BUDGET
USX-MARATHON GROUP 1994 CAPITAL, INVESTMENT & EXPLORATION BUDGET SET AT $895 MILLION
GULF ANNOUNCES FIRST QUARTER RESULTS
USX-Marathon Group 1997 Capital Investment and Exploration Budget Set at $1.215 Billion
Vastar Resources Announces Capital Program Increase
S&P Affirms BB+, BB- Ratings on Gulf Canada Resources Ltd.
USX-Marathon Group 1998 Capital, Investment and Exploration Budget Set At $1.497 Billion
Unocal Mulls Cuts In Short-Term Capital Projects; No Impact On High Value Exploration, Growth Programs
TO BUSINESS EDITOR:.

Terms of use | Copyright © 2016 Farlex, Inc. | Feedback | For webmasters