EnerMark to purchase Cabre Exploration

EnerMark Income Fund has agreed to buy Cabre Exploration Ltd., Calgary, for $350 million (Can.) in stock and assumed debt.

Cabre shareholders must approve the deal, which would increase production by Calgary-based EnerMark to 38,600 boe/d. It would add 8,700 b/d of crude oil and 33 MMcfd of gas production.

Cabre stockholders would get four EnerMark units and a warrant to buy another unit for $4.71 by Dec. 15, 2001. EnerMark would also assume more than $38 million in Cabre debt. The offer is a premium of 38% over the recent Cabre stock price.

EnerMark has spent more than $700 million and taken over a number of smaller Canadian exploration companies in the past year, including Western Star Exploration Ltd., Pursuit Resources Corp., and EBOC Energy Ltd.

In August Enerplus Group, Calgary, which manages the EnerMark royalty trust, was itself acquired by El Paso Energy Corp., Houston.