Closing the transaction is conditional upon clearance under the Canadian Competition Act which is expected in April 2007.
BG will retain significant exploration prospects in Canada and Alaska as well its 50% interest in the producing Waterton asset in Southwest Alberta. BG's retained exploration prospects consist of operatorship of two licenses in the Central Mackenzie Valley of the Northwest Territories covering 110,196 hectares; ownership of 80,233 hectares in the Foothills of British Columbia; and, in Alaska a 33.3% and 40% interest in over 2.5 million acres of exploration potential in the North Slope Foothills and Eastern North Slope respectively.
BG entered Canada with the purchase of El Paso Oil and Gas Canada Inc in March 2004. The cash consideration was US$345.6 million. The properties purchased are located in the Western Canadian Sedimentary Basin covering the four core areas of Bubbles, Ojay, Copton and Waterton.
In May 2005, BG acquired two licenses (EL 429 & EL 432) in the Colville Lake area of the Mackenzie Valley, Northwest Territories, about 700 miles north west of Yellowknife. BG has a 75% interest and is operator.
In September 2005, BG acquired a 100% interest in a 3,200 acre license and a 50% interest in a 1,920 acre license in the Waterton area of Southeast Alberta.
In January 2006, BG acquired a 100% interest in a 45,000 acre license in the Robb Lake area of Northeast British Columbia.
In January 2006, BG signed a Participation Agreement with Anadarko and Petro-Canada for a 33.33% farm-in to 2.1m acres on the Alaskan North Slope. Alaska's North Slope has estimated discovered reserves in excess of 17 billion barrels of oil and 35 trillion cubic feet of gas.
In May 2006, BG signed an Exploration Agreement with Anadarko for a 40% share in 208,000 acres on the Alaskan Eastern North Slope. The acreage is situated near Prudhoe Bay field which has already produced over 10 billion barrels of oil.
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