Abu Dhabi National to buy Northrock Resources

Abu Dhabi National Energy Co. announced plans to buy Northrock Resources Ltd., a subsidiary of Pogo Producing Co., for $2 billion. The transaction marks Abu Dhabi National's entry into Canada.

By OGJ editors
HOUSTON, May 29 -- Abu Dhabi National Energy Co. announced plans to buy Northrock Resources Ltd., a subsidiary of Pogo Producing Co., for $2 billion. The transaction marks Abu Dhabi National's entry into Canada.

The sale is expected to close during the third quarter, pending regulatory approvals.

Based in Calgary, Northrock has operations in Alberta, Saskatchewan, and the Northwest Territories. It currently produces 29,000 boe/d. For yearend 2006, Northrock reported estimated proved reserves of 706 bcf of gas equivalent.

Northrock's production is 51% oil and its reserves are 55% oil, said Pogo. The Houston company is in the process of selling its noncore assets. Pogo said it is continuing to explore strategic alternatives, which could include a possible sale of the company.

Pogo acquired Northrock from Unocal Corp. for $1.8 billion in 2005 (OGJ, July 18, 2005, p. 30).

Abu Dhabi National is a global energy conglomerate with investments in power generation, renewable energy, upstream oil and gas operations, pipelines, services, and structured finance projects.

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