SEAGULL ENERGY CORPORATION ANNOUNCES PURCHASE OF NOVALTA RESOURCES INC.
HOUSTON, Jan. 4 /PRNewswire/ -- Seagull Energy Corporation (NYSE: SGO) announced today that it has completed its purchase of Novalta Resources Inc., the exploration and production unit of Nova Corporation of Alberta. Seagull paid $202.9 million (U.S.) in cash, subject to customary post-closing adjustments, for Novalta at today's closing. The transaction was funded primarily through a new credit facility provided by a group of 10 Canadian banks led by Chemical Bank of Canada, The Bank of Nova Scotia and Canadian Imperial Bank of Commerce. As previously reported, Novalta's assets consist primarily of producing gas and oil properties concentrated in Alberta, plus about 250,000 net undeveloped leasehold acres. Seagull estimates that, as of Jan. 1, 1994, the properties contain at least 260 billion cubic feet equivalent of proved natural gas reserves, some 94 percent of which are gas. Seagull plans to retain Novalta's employee group, which is located primarily in Calgary, Alberta, Canada, and operate the properties from existing offices and field locations. In addition to its exploration and production activity, Houston- based Seagull is engaged in the transportation, distribution and marketing of natural gas, liquids products and petrochemicals, and natural gas processing. -0- 1/4/94 /CONTACT: Alan Payne of Seagull Energy Corporation, 713-951-4700/ (SGO)
CO: Seagull Energy Corporation; Novalta Resources Inc. ST: Texas, Alberta IN: OIL SU: TNM
CK -- NY046 -- 8987 01/04/94 15:16 EST
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|Date:||Jan 4, 1994|
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