Dominion Resources unit Dominion Energy has agreed to pay (US)$128 million, C$7.60/share, to acquire Archer Resources Ltd. ofCalgary, AB. The deal gives Dominion Energy control of Archer’sdaily production of approximately 72 MMcf/d of gas and 1,500 b/dof oil in Alberta, plus Archer’s 16 processing facilities and over500,000 undeveloped acres. Dominion Energy said the deal, ifconsummated as expected, would increase its gas productioncapability by approximately 50%.

“Archer fits well with Dominion’s long-term growth strategy andis a logical addition to our family of businesses,” said Dominion’sG.E. Lake, Jr., senior vice president – oil and gas operations.”We’re acquiring significant future drilling potential and anexcellent platform for growth into our third core area ofoperations in addition to Michigan and the Appalachian Basin. We’realso gaining an experienced, compatible management team andemployee group that has created consistent profitability and strongfinancial performance while maintaining a low cost structure.”

Under an agreement approved by the boards of both companies,Dominion Energy expects to extend an offering circular to Archershareholders on March 17, with a 21-day offering period. Closing isexpected in late April. Lehman Brothers Canada Inc. advisedDominion on the transaction.

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