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Shareholders Approve Santa Fe-Snyder Merger

Shareholders Approve Santa Fe-Snyder Merger

The shareholders of Santa Fe Energy Resources and Snyder Oil Corp. approved the merger of the two companies during special meetings yesterday. More than 99% of the voting shareholders of each company voted in favor of the merger. The new Houston-based combined company, which will be called Santa Fe Snyder Corp., will have a market capitalization of $1.6 billion, with reserves of 315 million boe. Combined production for 1999 is expected to be 105,000 boe/d, 55% of which will be gas and 70% of which will be produced in the U.S.

"We are excited about the union of Santa Fe and Snyder and believe that our enhanced strength will allow us to move quickly in pursuit of global opportunities and domestic acquisitions that enhance shareholder value," said CEO James L. Payne.

Based on combined three-year results through 1998, 270% of production was replaced (75% from drilling) at a finding and development cost of $4.97 per BOE. Over those three years, the companies achieved an average of 14% annual production growth and 26% reserve growth.

Under terms of the merger, Snyder shareholders will receive 2.05 shares of Santa Fe common stock for each share of Snyder, resulting in Santa Fe shareholders owning 60% and Snyder shareholders owning 40% percent of Santa Fe Snyder. The transaction will be accounted for as a purchase and will be tax free to Snyder shareholders.

John C. Snyder, currently the chairman and CEO of Snyder will be the chairman of Santa Fe Snyder. The eleven-person board will be composed of five members from Snyder's current directors and the existing six directors from Santa Fe.

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