Seneca makes bid for Tri Link


Seneca Resources Corp., a wholly owned subsidiary of National Fuel Gas Co., Buffalo, NY, has offered to acquire the outstanding shares of Tri Link Resouces Ltd., a Calgary-based exploration and production company with 11,500 boe/d of production.


Seneca Resources Corp., a wholly owned subsidiary of National Fuel Gas Co., Buffalo, NY, has offered to acquire the outstanding shares of Tri Link Resouces Ltd., a Calgary-based exploration and production company with 11,500 boe/d of production.

The purchase price is $7.05 (Can.)/share, which Seneca says is 40% over the weighted-average closing price of the shares over the last 20 trading days. Transaction value, including assumed debt, is about $340 million (Can.).

The offer is subject to the tendering of at least two thirds of the Tri Link common shares to Seneca and to regulatory approvals.

The addition of Tri Link's production and undeveloped areas in Canada will build Seneca's total reserves base to nearly 1 tcfe, said Seneca. Tri Link has agreed not to solicit or initiate negotiations with any other party and to pay a $6.3 million noncompletion fee to Seneca under certain circumstances.

Bernard Kennedy, Chairman and CEO of National Fuel Gas, said, "The Tri Link acquisition will provide us a Canadian base to continue to grow Seneca's North American reserves. Canada holds significant opportunities to find and produce hydrocarbons to help supply our North American energy demands."

Seneca expects the transaction to be concluded by June 15, 2000.

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