ARC Energy Trust to acquire Startech Energy

ARC Energy Trust, Calgary, will acquire Startech Energy Inc., Calgary, in a $485 million (Can.) takeover deal. Startech produces about 10,000 b/d of crude oil and 35 MMcfd of natural gas in Alberta and Saskatchewan. The acquisition, approved by the Startech board, will increase ARC production by about 58% to 36,715 boe/d.


CALGARY�ARC Energy Trust, Calgary, will acquire Startech Energy Inc., Calgary, in a $485 million (Can.) takeover deal.

ARC will pay 0.96 of a unit, or about $10.90, for each Startech share and will assume $145 million in Startech debt.

Startech produces about 10,000 b/d of crude oil and 35 MMcfd of gas in Alberta and Saskatchewan. The acquisition, approved by the Startech board, will increase ARC production by about 58% to 36,715 boe/d.

ARC said the purchase will increase its distributions by 15% and lower operating costs by 10% on its Western Canada properties.

Energy trusts such as ARC have been involved in more than $1.6 billion in acquisitions and takeovers in 2000 in the Canadian oilpatch, including a $350 million offer two weeks ago by EnerMark Income Fund for Cabre Exploration Ltd. (OGJ Online, Nov. 7, 2000).

Penngrowth Energy Trust said Dec. 1 that it had closed a $128 million deal with Canadian Natural Resources Ltd. for six oil and gas properties.

Companies acquired by trusts this year include Venator Petroleum Co.Ltd., Raider Resources Ltd., Draig Energy Ltd., Western Star Exploration Ltd., Pursuit Resources Corp., and EBOC Energy Ltd.

More in Companies