By the OGJ Online Staff
HOUSTON, Mar. 8�CanArgo Energy Corp., Calgary, plans to offer to buy the common stock of Lateral Vector Resources Inc., Regina, Sask., in a transaction worth $3.25 million (Can.).
Carpatsky Petroleum Inc., Calgary, recently offered to acquire Lateral Vector in a stock-for-stock transaction (OGJ Online, Mar. 2, 2001).
CanArgo said its 10� (Can.)/share offer represents a 180% premium to the weighted average trading price of the LVR shares on the Toronto Stock Exchange for the 30-trading day period ending Mar. 6.
LVR has a stake in the development of Bugruvativske field in northeastern Ukraine (OGJ, Apr. 13, 1998, p. 38).
Most of CanArgo's operations are in Eastern Europe, with particular concentration on Georgia.
The offer will be made through a wholly owned subsidiary of CanArgo, and will be conditional on the deposit of at least 90% of the outstanding LVR shares, regulatory approval of Canada and the Ukraine, and the absence of any material change in the business or operations of LVR.
It will also be conditional upon the lapse or termination without material cost to LVR of the preliminary agreement between LVR and Carpatsky Petroleum.
