To expand its exploration and development projects, Calgary’sWestminster Resources Ltd. will sell all of its Canadian oil andgas assets to AEC Oil & Gas for $62.7 million in cash under anagreement reached yesterday by the companies. Closing is set forOct. 19.

Westminster, which will use some of the money to pay down itsdebt, plans to spend another $22 million to expand its jointventure with Berkley Petroleum in the San Joaquin Basin inCalifornia. The Berkley East Lost Hills No. 2 step-out well isdrilling at 16,600 feet, and it is expected to encounter the top ofthe target Temblor formation toward the end of the month. The No. 3well there is drilling at 13,970 feet, and is testing a large,separate structural prospect from the No. 1/No. 2 structure. TheNo. 1 tie-in remains on schedule for a December startup.

Westminster also is reviewing several drill-ready explorationprojects in Canada to begin an “aggressive exploration program”before year’s end at a cost of about $8.5 million.

For AEC, Randy Eresman, president, said the acquisition willconsolidate his company’s resources in northeast British Columbia,and build the company’s position in the Sierra Ekwan region.

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