UNITED MERIDIAN CORPORATION ANNOUNCES PREVIOUSLY SIGNED AGREEMENT WITH NORFOLK HOLDINGS, INC.
HOUSTON, April 5 /PRNewswire/ -- United Meridian Corporation ("UMC"), a privately-held oil and gas exploration and production company headquartered in Houston, Texas announced today the previous signing on March 18, 1993 of a definitive agreement to acquire Norfolk Holdings, Inc. ("Norfolk"), through its wholly-owned subsidiary UMC Petroleum Corporation. The agreement calls for UMC to acquire all of the outstanding equity securities of Norfolk for approximately $109 million cash, subject to certain adjustments as mandated in the securities purchase agreement. Subject to final regulatory approvals, a closing is now expected on or before April 30. Based on year-end 1992 independent engineering estimates, Norfolk owns proved reserves of 5.6 million barrels of oil and 154.7 billion cubic feet ("bcf") of natural gas. Approximately 50 percent of the reserves are located in the Western Canadian provinces of Alberta and Saskatchewan, with the remaining 50 percent in the United States, predominantly in a major long life gas producing area in northern Montana. A majority of these properties are currently operated by Norfolk. Substantial development and exploitation potential is also associated with both the U.S. and Canadian properties. Norfolk has substantial other assets, including approximately $20 million of highly liquid working capital along with a significant inventory of developed and undeveloped acreage. Norfolk's year-end 1992 long-term debt of $20 million will be retired at closing of the transaction. -0- 4/5/93 /CONTACT: Jonathan M. Clarkson, senior vice president of UMC, 713-654-9110/
CO: United Meridian Corporation; Norfolk Holdings, Inc. ST: Texas IN: OIL SU: TNM
TM -- NY058 -- 3174 04/05/93 16:24 EDT
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|Date:||Apr 5, 1993|
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