Unocal Corp. subsidiary Unocal Canada Resources is buying a 46%stake in Calgary-based Northrock Resources Ltd. for C$265 million(US$175 million). The company has average daily gross production of160 MMcf/d of gas and 11,000 b/d of crude oil and gas liquids andholds net proved reserves of 35 million bbl of oil and liquids and363 Bcf of gas. Northrock also has valued its exploration assets(land and seismic) at C$132 million (US$88 million).

“The addition of the Northrock interest is a key element of ourNorth American gas strategy and will complement our already strongnatural gas base in the Gulf of Mexico region and the equityposition we are acquiring in Tom Brown, Inc., in the RockyMountains,” said Unocal Chairman Roger C. Beach. “At the same time,the savings we realize by reinvesting the pretax proceeds from thedisposition of our Tarragon Oil and Gas Limited holdings enhancethe attractiveness of this investment.” Marathon Oil acquiredTarragon last year, including Unocal’s Tarragon holdings.

Unocal Canada plans to acquire 10 million shares of Northrockcommon stock at C$14 per share, representing 32% of all outstandingshares. Northrock’s board has agreed to support Unocal Canada’stender offer conditioned on Unocal Canada obtaining at least 6.9million shares of Northrock common stock. If the tender offer issuccessful, Unocal will buy 7.6 million additional shares at C$16per share, increasing its interest to as much as 46%.

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