Financial news briefs, Mar. 2, 2001

March 2, 2001
Shiningbank Energy Income Fund � Ionic Energy � Compton Petroleum �Bow Valley � True Energy � Noble Affiliates � EXCO Resources � Anderson Exploration


Shiningbank Energy Income Fund, Calgary, bid $186 million (Can.) in a friendly takeover bid for Ionic Energy Inc., Calgary. The Ionic Energy board approved the offer of $126 million in equity and $60 million in assumed debt. The offer remains subject to shareholder approval. Ionic Energy produces 4,000 boe/d in western Canada. Shiningbank produces 6,800 boe/d.

Compton Petroleum Corp., Calgary, plans to buy up to 5.4 million, or about 5%, of its common shares on the Toronto Stock Exchange by Mar. 4, 2002. The exploration and production company said its stock is selling at a discount to its net asset value.

Bow Valley Energy Ltd., Calgary, reported 2000 revenues of nearly $11.3 million (Can.), compared with $1.7 million (Can.) in 1999. The spiraling sales figures were attributed to increased volume resulting from an extended well test in the North Sea Kyle field. Bow Valley reported net income of nearly $2.7 million (Can.) compared with a loss in 1999 of $898,000 (Can.).

True Energy Inc., Calgary, completed its take-over bid for Marengo Exploration, Calgary. True Energy directed Computershare Trust Co. of Canada to pay for Marengo stock with money already deposited under the tender offer. After pro-rationing, 836,320 common shares of True were issued in partial consideration for the Marengo shares acquired to date.

Noble Affiliates Inc., Ardmore, Okla., said its subsidiary, Energy Development Corp. (China) Inc., has an agreement with Devon Energy Corp., Oklahoma City, Okla., to acquire a 50% interest in three South China Sea blocks. Devon operates South China Sea Block 16/02, Block 16/05, and Block 26/35, comprising 2 million acres in the Pearl River Mouth basin. Three wells are slated to be drilled early this year. The deal remains subject to approval by the Chinese government. Chinese National Offshore Oil Corp. has the right to participate in 51% of any discovery.

Anderson Exploration Ltd., Calgary, hired Waterous & Co., Calgary, to sell its properties in western Canada with net production of 6,400 b/d of crude and natural gas liquids and 5.7 MMcfd of gas. The properties are in the Crystal, Joffre, Otter, Red Earth, Utikima, Hayter, Turner Valley, Provost, and Viking-Kinsella fields. Waterous said marketing materials will be available by late March and proposals will be received by late April.

EXCO Resources Inc., Dallas, Tex., has agreed to acquire oil and gas assets in Texas, Louisiana, and Oklahoma for $15 million from STB Energy Inc., Tulsa. STB Energy is a wholly owned subsidiary of Hilton Petroleum Ltd., Bakersfield, Calif. EXCO estimates the deal involves reserves of 661,000 bbl of oil and natural gas liquids, and 8.7 Bcf of natural gas.