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Unocal Puts Western Canada E&P Assets on the Block

El Segundo, CA-based Unocal Corp. said last week that it is seeking prospective purchasers for the sale of its Northrock subsidiary's Western Canada crude oil and natural gas exploration and production assets. Unocal said the assets would not include the company's midstream and storage assets in Canada.

Located in British Columbia, Alberta and Saskatchewan, Unocal's western Canadian upstream producing properties during 1Q2005 averaged 36,900 Boe/d, including approximately 100 MMcf/d of natural gas and 20,000 bbl/d of oil and natural gas liquids. The company noted that average net production after royalties in 1Q2005 was 29,600 Boe/d. The majority of the production is from longer life, higher working interest, Unocal-operated fields.

Any sale would be subject to, among other things, approval by Unocal's board of directors. The company has retained CIBC World Markets Inc. and Waterous & Co. as its exclusive financial co-advisors. Unocal said confidential information about the properties is expected to be made available to qualified prospective purchasers in June.

Unocal, which is currently awaiting a merge with Chevron Corp., is one of the world's leading independent natural gas and crude oil exploration and production companies. Last month, Chevron agreed to acquire rival Unocal for $16.8 billion (see NGI, April 11). Chevron justified the price by noting that the producer offered a set of "unique" assets. Combining the companies will form one of the top oil and natural gas producers in both Asia and in the Gulf of Mexico.

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