Anadarko offers $137 million for Gulfstream Resources

June 25, 2001
Anadarko Petroleum Corp., Houston, has agreed to acquire Gulfstream Resources Canada Ltd., Calgary, for $137 million (US). Anadarko is offering $2.65/share (Can.) in cash. Gulfstream has been fighting off an offer by Roc Oil Co. Ltd., Sydney, of $1.10/share (Can.) in cash.


By the OGJ Online Staff

HOUSTON, June 25 -- Anadarko Petroleum Corp., Houston, has agreed to acquire Gulfstream Resources Canada Ltd., Calgary, for $137 million (US). Anadarko is offering $2.65/share (Can.) in cash.

Gulfstream has been fighting off an offer by Roc Oil Co. Ltd., Sydney, of $1.10/share (Can.) in cash (OGJ Online, Apr. 2, 2001).

Gulfstream's directors have approved the agreement and plan to tender their shares, about 5.8% of Gulfstream, to the Anadarko offer.

The offer will be mailed by July 6 and be open for 35 days from the mailing date. Anadarko expects to close the acquisition in the third quarter.

Gulfstream agreed to discontinue its efforts to find other alternatives and close the data room it had opened (OGJ Online, Apr. 17, 2001). It will provide Anadarko the right to match competing offers.

Anadarko said Gulfstream would add 70 million boe of proved reserves and 4,700 b/d of oil production to its portfolio. The deal will also expand its activity in the Middle East, where Gulfstream has assets in Qatar and Oman.

"The Gulfstream properties provide Anadarko with production and exploration in the Middle East, which offers a world-class petroleum system with high exploration success rates and low finding and developing costs. ... These properties give us a solid base from which to grow production from existing fields and from future exploration," said John N. Seitz, Anadarko president and CEO.

If the offer is not completed, Gulfstream will pay Anadarko $8 million (Can.).