Unocal Canada Resources said last week it plans to conditionallyoffer C$221 million for the 52% of Northrock Resources Ltd. that itdoes not already own. The Unocal subsidiary acquired 19.6 millionshares of Calgary-based Northrock in transactions announced inApril 1999 (see NGI, April 19, 1999).

Northrock has average daily gross production of 160 MMcf, 11,000barrels of crude oil and gas liquids. It holds net proved reservesof 35 million bbl of oil and liquids and 363 Bcf of gas.

Unocal does not expect Northrock’s board to decide until it hasreceived and considered a valuation from an independent appraiser.Accordingly, Unocal does not expect to mail the offer documents toshareholders until early May.

Various conditions will have to be satisfied before the offer ismade. Northrock’s board of directors will have to recommendacceptance of the offer to the shareholders, the two will have toenter into a definitive support agreement regarding the offer, andUnocal’s board must approve the deal.

Once the offer is made, the deal will need regulatory approvalsand a minimum of 90% of the Northrock shares not already owned byUnocal in order to close.

Lane said the purchase is important to Unocal’s overall plans.”You have to look at it in the context of a North American gasstrategy. It fits in with the overall continental plan.” OtherCanadian assets owned by Unocal Canada Resources include the AitkenCreek storage facilities and the Calven Pipeline. Overall, Unocal’sCanadian production is 10,000 boe/d, Lane said.

Joe Fisher, Houston

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