Finance/Companies news briefs, July 27

TNK-Ukraina � Lysychansknaftaorgsyntez ... Nafta Polska � Rafineria Gdanska ... Encal Energy

The Ukrainian State Property Fund has selected TNK-Ukraina (the Ukrainian subsidiary of Russia's Tyumen Oil Co.) as the winner of the tender of a 67.41% share package in the Lysychansk refinery. TNK-Ukraina has agreed to pay 50 million hryvnia ($9.2 million) for the stake in the Lysychansknaftaorgsyntez (LYNOS) refinery. TNK will also have to supply LYNOS with 4.5 million tonnes/year of crude and pay of a reported $250 million in debt.

Nafta Polska will seek a strategic investor for the Gdansk refinery. The firm expects negotiations to begin in December, spokesman Janusz Kwiatkowski said. A strategic investor would be able to buy up to a 75% stake in the Gdansk refinery as well as new shares issued in the process of raising capital. In 1999, the refinery made net profits of 114.7 million zlotys ($26.7 million). The government will make the decision within 2 or 3 months whether to sell Rafineria Gdanska to an industry investor or offer its shares for trading on the Warsaw Stock Exchange, a Deputy State Treasury Minister said.

Encal Energy Ltd., Calgary, has paid $110 million (Can.) for properties, undeveloped land, and processing facilities in the Medicine Hat and Sylvan Lake areas of southern Alberta. The seller was not named, but Encal said it is a major producer. The buyer said the properties are complementary to its core natural gas production assets in the Markerville-Sylvan Lake area. The deal is scheduled to close Aug. 1 and will be funded by sale of noncore assets and about $90 million in new debt. Encal is increasing its capital spending in 2000 to $315 million (Can.) from $225 million.

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