El Paso Corp. said subsidiary El Paso Oil & Gas Canada Acquisition Inc. earlier this month received an advance ruling from the Canadian Competition Bureau regarding its proposal to acquire all the shares of Velvet Exploration Ltd. The Commissioner of Competition indicated El Paso would not be subjected to the regulatory process dealing with matters of competition, which keeps El Paso on track to complete the deal in the third quarter. The next step is to obtain approval under the Investment Canada Act, which requires review of significant non-Canadian investments in Canada. Under the terms of El Paso’s offer, which was announced on June 14, Velvet shareholders would receive C$8.15 in cash for each Velvet common share, or a total of about US$280 million, including the assumption of US$52 million.

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