PanCanadian to acquire Causeway Energy

PanCanadian Petroleum Ltd., Calgary, has agreed to buy Causeway Energy Corp., Calgary, for $65 million (Can.) plus the assumption of $4 million in debt. The deal is subject the approval of a plan of arrangement and Causeway shareholder approval. It is expected to close later this summer.

June 15, 2001

By the OGJ Online Staff

HOUSTON, June 15 -- PanCanadian Petroleum Ltd., Calgary, has agreed to buy Causeway Energy Corp., Calgary, for $65 million (Can.) plus the assumption of $4 million in debt.

The deal is subject to the approval of a plan of arrangement and Causeway shareholder approval. It is expected to close later this summer.

PanCanadian will acquire Causeway's northern Montana and southern Saskatchewan properties, which include 8.5 MMcfd of gas production, reserves of 80 bcf on a proven and one-half probable basis, 210,000 acres of undeveloped land, and a 100% interest in the cross-border Chinook Pipeline.

In addition, Causeway operates a 1.12 million acre concession in Palau with 38% interest.

Terry Schmidtke, general manager of PanCanadian's Great Plains business unit, said, "With this acquisition, we are building another stepping stone into Montana with under-exploited and highly prospective lands.... These new long-life, low-risk assets clearly fit our existing assets and allow us to deploy our industry-leading technologies and exploration strategies to regions in Montana and Saskatchewan."