Anadarko strikes deal to buy Gulfstream Resources Canada

Anadarko Petroleum has struck a deal to pay $ 137 mm to buy Canadian-based Gulfstream Resources Canada, adding 70 mm barrels of oil reserves in the Middle East, the company said. The deal marks Anadarko's first entry into oil and gas production and exploration in the Middle East. The Houston oil company will be acquiring three oil producing offshore blocks in Qatar's waters and an onshore block with three natural gas fields in Oman.
"It's a small deal in the greater scheme of things," said John Gerdes, energy analyst with Raymond James & Associates in Houston. "But if they can get halfway reasonable fiscal terms, this will be another solid part of their portfolio."

Anadarko struck its deal to buy Gulfstream as the company was facing an offer from Australia-based ROC Oil Co. The ROC offer, first made on April 2, was extended for a third time through July 10.
In extending the offer, John Doran, ROC CEO, said, "The time has surely come for Gulfstream to commence some form of positive action."
Anadarko mailed its offer to Gulfstream beginning July, and the offer will remain open for 35 days. Gulfstream has agreed to discontinue its efforts to seek and consider strategic alternatives, close its data rooms, not solicit other proposals, and to provide Anadarko with the right to match competing offers.
Gulfstream will waive the application of its poison pill takeover defence shareholder rights plan regarding Anadarko's offer. Gulfstream's board of directors has unanimously approved the acquisition agreement. Directors and officers of Gulfstream, holding about 5.8 % of the Gulfstream common shares, have agreed to tender their shares to Anadarko.

The properties Anadarko will be acquiring include:
-- Block 12, which contains the Al Rayyan field, currently producing 12,000 bpd of oil. A recently approved development plan is expected to more than double the field's capacity in 2002. Gulfstream holds a 65 % working interest in the 19,000-acre block.
-- Block 11, located south of Al Rayyan and covering 652,000 acres. Two exploration wells are planned this year for the block. Gulfstream holds a 49 % working interest in this block.
-- Block 13, an exploration block that has estimated recoverable reserves of 5 bn barrels. Gulfstream has a 65 % working interest in it.
-- Block 30, operated by Gulfstream with a 100 % working interest. Three gas fields are under development and will supply gas to the Omani government. Production of more than 80 mm cfpd is expected by mid-2002.

"These properties give us a solid base from which to grow production from existing fields and from future exploration," John Seitz, Anadarko president, said. Anadarko expects to close the transaction in the third quarter of this year and will fund the acquisition from cash.