Gulf Canada Resources Ltd. has agreed to purchase all of theoutstanding common shares and associated rights of Crestar Energyfor approximately $177 million in cash and 181 million ordinaryshares of gulf. More than 90% of the Crestar shares have beentendered, and Gulf will also exercise its statutory rights topurchase the remaining shares. The deal was first announced inOctober (see Daily GPI, Oct. 3). Dick Auchinleck, CEO of Gulf, saidthe acquisition will give the company a “balanced portfolio ofassets and a substantial presence in North America’s gas markets,where our gas production more than doubles.” He said the move alsowill provide cash flow to fund the development of prospects atSurmont, the Mackenzie Delta, offshore Eastern Canada and overseas.When the merger is completed, the combined entity will produce288,000 boe/d in 2001, before anticipated asset sales of up to20,000 boe/d. Combined proved oil reserves would be 586 millionbarrels and gas reserves would total 3.3 Tcf.

FirstEnergy Services has signed a long-term energy service andsupply agreement with National City Corp. for facilities in Ohio,Pennsylvania, Kentucky, Indiana, Illinois and Michigan. The companywill serve as National City’s energy manager, helping it securecompetitive prices for electricity, natural gas andenergy-efficiency projects for 1,300 bank branches, operationscenters and other locations. FirstEnergy Services also will provideautomated billing and other energy-related, Internet-basedcommunication services for the Cleveland, OH-based financialservices firm. National City relied on the consulting services ofThe Studebaker Group, Inc., to assist in the evaluation ofpotential energy suppliers.

Amerada Hess, based in New York City, plans to issueapproximately 17.1 million common shares of its stock, pay nearly$2.4 billion in cash and assume $1.6 billion in gross debt to buyUnited Kingdom energy corporation Lasmo. Lasmo’s board still has toapprove the acquisition, along with 90% of the company’sshareholders. Once done, the Lasmo shareholders would receive about98 British pounds and one Hess common share for every 78.9 Lasmoshares. Hess officials said the deal would boost its move intointernational exploration and production, especially adding to itsoil reserves. The combined company would raise Hess’ dailyproduction to 582,000 barrels of oil a day in 2001 from its current374,000.

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