Burlington Resources Inc. this week filed updated pro forma financial information with the Securities and Exchange Commission (SEC) regarding its pending acquisition of Poco Petroleums Ltd. to include third quarter results of combined operations. Shareholders of Calgary-based Poco yesterday approved the C$2.6-billion takeover that would create North America’s fourth-largest gas producer.

The deal was announced in August (see NGI Aug. 23). “Establishing a major presence in Canada enhances our position as a dominant independent E&P company with a strong North American natural gas focus,” said Burlington CEO Bobby Shackouls when the deal was announced. “Poco Petroleums is an excellent partner to enable us to achieve that objective.”

On a stand-alone basis for the nine-months ended Sept. 30, BR reported basic earnings per share of US$0.27/share. The SEC filing reflects that on a combined basis with Poco for the first nine months of 1999, pro forma earnings increased by 44% to US$0.39/share.

The acquisition of Poco Petroleums Ltd. of Calgary would give Houston-based Burlington Resources Inc. (BR) a Canadian presence, add 500 MMcf/d of gas production and make the gas-focused company the third largest holder of gas reserves in North America. BR already ranks first among U.S. independent producers in terms of proved U.S. reserves.

The deal is viewed positively by industry analysts who see no duplication of assets and the expectation of good things to come from Poco’s assets now that they will be backed by Burlington’s financial clout.

Joe Fisher, Houston

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