Burlington Receives Investment Canada Approval
Burlington Resources Inc. has received approval under the Investment Canada Act to complete Burlington's offer to acquire all of the common shares of Canadian Hunter.
"We are very pleased to have obtained the approval of the Honourable Brian Tobin, Minister of Industry, to proceed with this transaction," said Bobby S. Shackouls, Burlington Chairman, President and Chief Executive Officer. "At the close of this transaction, a substantial 40% of our operations will be in Canada. We have embraced our commitment to Canadian operations through a number of business commitments to Investment Canada that will deliver extensive benefits to Canada and Burlington shareholders."
Burlington is committed to growing our Canadian asset base with a significant multi-year capital spending program. These investments will support an aggressive drilling program in our combined Canadian operations, including at least $34 million of spending to apply its extensive unconventional gas expertise to evaluate the potential of coalbed methane and tight gas sands in Canada. If successful, these efforts could lead to the ultimate discovery of substantial new natural gas reserves. Burlington also plans to employ the vast majority of the combined Canadian workforces and will encourage the exchange of technical knowledge and experience between Canadian and U.S. operations. The new Burlington Resources Canada leadership team will be selected from existing Burlington Resources Canada and Canadian Hunter management.
"I am confident that Burlington's vision to develop Canada's energy resources will require many talented individuals and will provide exciting opportunities for Canadian Hunter's people," said Steve Savidant, President and Chief Executive Officer of Canadian Hunter.
"In its community participation and philanthropy, Canadian Hunter has been a role model for the energy industry. Burlington also brings a high level of commitment to its community," said Mark Ellis, President of Burlington Resources Canada. "Burlington Resources Canada is proud to commit to strong community support and charitable donations. Burlington Resources Canada will also continue to foster and develop long-term opportunities for First Nations peoples through a number of community initiatives. And we will continue to provide opportunities for young Canadians by hiring summer students, sponsoring university co-op training programs and recruiting Canadian graduates."
"Burlington is making a commitment to Canada, a commitment we believe is justified by the combination of Burlington Resources Canada and Canadian Hunter's asset base, upside potential and outstanding people," Mr. Shackouls concluded.
Burlington's offer to acquire the outstanding shares of Canadian Hunter expires at 5:00 pm Mountain Time on December 3, 2001. The board of directors of Canadian Hunter has unanimously recommended that shareholders of Canadian Hunter accept the offer.