Unocal looks to enhance value of Canadian oil and gas assets
El Segundo, Calif., Oct. 13, 1997 -- Unocal Corporation said today it is considering the restructuring of certain Canadian oil and gas assets held by its Unocal Canada, Ltd., subsidiary.
The company said the restructuring could involve an exchange of assets for an equity interest in a publicly traded Canadian oil and gas company, or the formation of an alliance, joint venture or operating partnership with a Canadian firm.
"Our objective with this restructuring is to enhance the long-term growth and value of our Canadian oil and gas properties," said Charles R. Williamson, Unocal group vice president for International Operations. "We feel that we have significant potential in Canada, and joining with an aggressive Canadian company will enable us to realize the full value of those assets for our stockholders."
Unocal Canada's current working interest production from fields in Alberta, British Columbia and Saskatchewan is about 25,000 barrels of oil equivalent per day (before royalty interest).
Williamson noted that Unocal and its advisors had narrowed the discussions to a short list of key Canadian firms and would open a data room shortly. CIBC Wood Gundy is acting as financial advisor for Unocal.
The company did not indicate a schedule for negotiations or an estimated date for completion of the transaction.
Updated: October 1997