Vintage Petroleum to acquire Canadian-based Genesis Exploration

Vintage Petroleum Inc., Tulsa, Wednesday said it plans to acquire Genesis Exploration Ltd., Calgary, for $898 million (Can.), including debt. The transaction is the latest in a series of acquisitions in the Canadian oil and gas industry.


By the OGJ Online Staff


HOUSTON, Mar. 28�Vintage Petroleum Inc., Tulsa, Wednesday said it plans to acquire Genesis Exploration Ltd., Calgary, for $898 million (Can.), including debt.

Both boards have unanimously agreed to the tender offer worth $18.25/share (Can.) for each Genesis share. The deal remains subject to shareholder approval.

The transaction is the latest in a series of acquisitions in the Canadian oil and gas industry (OGJ, Feb. 26, 2001, p. 28).

Genesis agreed not to solicit or initiate discussions with any third party concerning a business combination, and Vintage has the right to match any competing offer.

The offer will be made through a wholly owned subsidiary of Vintage, which expects the transaction to be accretive to this year�s earnings and cash flow.

S. Craig George, Vintage CEO, said, "The acquisition of Genesis builds upon our recent entry into Canada, through the acquisition of Cometra Energy (Canada) Ltd. last year, establishing western Canada as a significant core area."

Donald Sabo, Genesis chairman and senior vice-president, said the offer "recognizes full value for Genesis shareholders and provides price certainty and liquidity."

Genesis has operations concentrating on the Peace River Arch, West Central, and Northeast regions of Alberta.

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