Murphy Oil to acquire Beau Canada

The Canadian unit of Murphy Oil Corp. will acquire producer Beau Canada Exploration Ltd., Calgary, in a $381 million (Can.) takeover deal. Murphy will pay $2.15 per share in cash, a 27% premium over Beau�s recent closing price of $1.69. Murphy will also assume $183 million in debt.


The Canadian unit of Murphy Oil Corp. will acquire producer Beau Canada Exploration Ltd., Calgary, in a $381 million (Can.) takeover deal.

Murphy will pay $2.15/share in cash, a 27% premium over Beau�s recent closing price of $1.69/share. Murphy will also assume $183 million in debt.

Harvey Doerr, president of the Murphy Canadian unit, said Beau�s natural gas production of 57 MMcfd in western Canada will almost double Murphy production in Canada. He said the outlook for North American natural gas is very good and that is incorporated in Murphy's strategy. Beau also produces about 5,200 b/d of crude oil and liquids.

Beau also has more than $200 million in tax pool credits, which are an asset for companies facing rising taxes on high commodity prices.

Beau Canada chair Bruce Libin said putting the company on the market for bids produced a good result for shareholders.

Earlier this year, Beau Canada agreed to sell its 20 MMcfd Peggo gas field in British Columbia to an unnamed buyer (OGJ, Aug. 7, 2000, p. 24).

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