Rigel Energy Corp. of Calgary, a medium-sized Canadian producer,is opening a data room June 14 to solicit proposals from partiesinterested in “making an investment in the equity of thecorporation, merging with the corporation, acquiring certain ofRigel’s assets, or making an offer for 100% of the Corporation,”according to Don Gardner, Rigel’s chief financial officer. Aspecial committee has been appointed to conduct the process which”will be broad, open and transparent,” Gardner told the company’sannual meeting.

The company ranked 26th among Canadian producers with an average155 MMcf/d of gas production and 491 Bcf of gas reserves and 38.6million barrels of oil reserves in Canada in 1998. Its Canadianproduction was 55% gas. The company also produced 8,200 b/d of oilfrom the North Sea in the United Kingdom and had a 11.1 millionbarrel foreign reserve in 1998.

The Special Committee, chaired by Board of Directors ChairmanDick Aberg, is expected to receive bids by mid-August. “To date,without a solicitation process, we have had a gratifying number ofparties express an interest in attending the data room,” saidGardner. “The initial documents have just been released and weanticipate that there will be additional interest expressed beforewe open for business on June 14th.”

Rigel President and CEO Don West, who will be retiring uponcompletion of the Special Committee process said, “It’s been along time since a company with such a powerful combination ofvaluable assets and tremendous upside potential became availablein the Canadian oil patch. Any suitor interested in pursuing Rigelwill quickly recognize the value and potential we have created overthe past 20 years.”

John Hodgins, chief operating officer, cited the Corporation’srobust exploration program in western Canada as being among theoperating highlights in 1998. Rigel replaced 230% of its 1998natural gas production from the Western Canadian Basin and 112% ofproduction from the Peace River Arch.

An industry observer said several Canadian producers currentlyare being shopped as owners seek to monetize assets which haveincreased in value as the demand for Canadian gas increases.

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