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

“We are excited about the union of Santa Fe and Snyder andbelieve that our enhanced strength will allow us to move quickly inpursuit of global opportunities and domestic acquisitions thatenhance shareholder value,” said CEO James L. Payne.

Based on combined three-year results through 1998, 270% ofproduction was replaced (75% from drilling) at a finding anddevelopment cost of $4.97 per BOE. Over those three years, thecompanies achieved an average of 14% annual production growth and26% reserve growth.

Under terms of the merger, Snyder shareholders will receive 2.05shares of Santa Fe common stock for each share of Snyder, resultingin Santa Fe shareholders owning 60% and Snyder shareholders owning40% percent of Santa Fe Snyder. The transaction will be accountedfor as a purchase and will be tax free to Snyder shareholders.

John C. Snyder, currently the chairman and CEO of Snyder will bethe chairman of Santa Fe Snyder. The eleven-person board will becomposed of five members from Snyder’s current directors and theexisting six directors from Santa Fe.

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