Only two weeks after it had launched its friendly takeover bid of Gulf Canada Resources Ltd., Conoco Inc. reported on Wednesday that the Canadian Commissioner of Competition issued an advanced ruling certificate to the company, allowing the acquisition to go forward without the requirement of any further approvals under the Canadian Competition Act.

In the merger transaction announced in early June (see Daily GPI, June 11), Conoco tendered a cash offer that would pay the Calgary-based company C$12.40 per share in a deal worth C$6.7 billion (US$4.3 billion). The deal is still subject to other regulatory hurdles, as well as Conoco’s conditions that were previously released. The acquisition is expected to be immediately accretive to Conoco’s earnings and cash flow per share. Conoco said it expects the merger to close in the third quarter.

With this transaction, Conoco’s North American natural gas production and proved reserves will increase by 50% to 1.4 Bcf/d, and 4.1 Tcf net, respectively. Conoco added that its North American liquids production (crude oil, syncrude and NGLs) will more than double, and proved North American liquids reserves will more than triple. Conoco’s total worldwide reserves (including syncrude) is expected to increase almost 40% to 3.7 billion boe. Total worldwide production will increase 32% to 335 million boe in 2001. In addition, acquired properties offer the potential to add 1.2 billion boe from probable reserves already identified, the company said.

Conoco added that Southeast Asia will become its fourth core area through Gulf Canada’s 72% interest in Gulf Indonesia Resources Ltd.. The company said it will more than double its proved reserves in Southeast Asia and more than triple 2000’s total net production from the region.

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