Petrobank Energy and Resources gave the board of directors ofRanger Oil an ultimatum yesterday: Give full access to Ranger’sconfidential data room under Petrobank’s terms no later than 5 p.m.(MDT) on Thursday, or Petrobank will not amend or extend its offer toacquire all of the common shares of Ranger. (see Daily GPI, June 9) This would mean Petrobank’sexisting offer would run out next Monday, at 9 a.m. Calgary time.

Petrobank has repeatedly asked to have access to the data roomthat other suitors have had access to, but also demands that ithave freedom to increase the offer after analyzing what it findsthere. Ranger continues to deny access to Petrobank because of theextra demand, which it believes would give Petrobank an unfairadvantage over competing bidders.

Petrobank has an amended deal to offer Ranger, contingent onbeing able to view the data room, and its findings beingsatisfactory. If the data is satisfactory, Petrobank is ready toupgrade its current deal for Ranger shareholders with two newoptions to choose from for each Ranger share:

(1)C$5.50 in cash up to C$575 million and one C$2 preferredshare which is intended for redemption following the closing of thepreviously announced C$262 million asset sale to Alberta EnergyCompany (If said asset agreement sale does not take place within120 days, then C$2 in common Petrobank shares); or (2) four sharesof Petrobank. The company’s current offer to Ranger is for eachshare of Ranger stock, C$7.50 up to a maximum of C$330 million, orthree common shares of Petrobank stock.

Petrobank believes that they can offer Ranger shareholders thebest deal because Petrobank and Caribou Capital own approximately6.8 million shares of Ranger Oil, or a little more than 5%. In theevent that Ranger is sold to Petrobank, Caribou Capital has said itwould transfer all its shares to Petrobank shares, and Petrobankwould dissolve the shares of Ranger it owns. Therefore anestimated 85% of remaining Ranger shareholders would be able totake the total cash option, John D. Wright, Petrobank president,explained.

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