As of 5 p.m. (Calgary time) on June 25, 2007, all of the conditions to the Offer by Statoil Canada Limited to acquire all of the securities of NAOSC were satisfied, with approximately 98% of the NAOSC shares having been validly deposited to the Offer. Statoil Canada Limited has taken up all such shares and will pay for such shares on or before June 28, 2007. Statoil Canada Limited has also exercised its statutory rights of compulsory acquisition under the Business Corporations Act (Alberta) to acquire the remaining NAOSC securities that were not deposited to the Offer.
The total transaction value is approximately CAD 2.2 billion, equivalent to about USD 2 billion.
In connection with the approval under the Investment Canada Act, Statoil Canada Limited made commitments to the Minister of Industry, which highlight the significant net benefit to Canada that will result from the acquisition. These include Statoil Canada Limited's commitment to making significant investments to develop NAOSC's oil sands operations and proposed bitumen upgrade and also utilizing its expertise in managing complex, integrated projects and applying technology solutions to NAOSC's operations, all of which will increase the certainty of the successful development of NAOSC's oil sands operations.
Statoil chief executive Helge Lund said:
"We are very pleased with having received the authorities' approval for this major acquisition. Statoil is committed to developing NAOSC's oil sands operations. We will build on NAOSC's knowledgebase and competence held by its employees in addition to applying our own expertise in going forward," said Mr. Lund.
"The acquisition of NAOSC represents a significant step in the development of Statoil's long-term production. The entry into Canada and the oil sands is an important strategic move to develop a heavy oil portfolio and to strengthen Statoil's marketing position in North America," added Mr. Lund.
Through the acquisition, Statoil gains access to 257,200 acres (1,110 square kilometers) of oil sands leases located in the Athabasca region of Alberta, northeast of Edmonton, one of the largest heavy oil provinces in the world.
First production is planned for late 2009/early 2010 from the Leismer demonstration project. It will have a capacity of 10,000 barrels of produced bitumen per day. The portfolio is expected to yield more than 200,000 barrels per day at the end of the next decade.
Statoil ASA is an integrated oil company covering the whole value chain from exploration and production to manufacturing and marketing. Represented in over 30 countries, it is engaged in exploration and production in 15 of these. Being the operator for 24 oil and gas fields offshore Norway, the group is the leading operator on the Norwegian continental shelf, with a strong technology base and a solid competence base on reservoir management and increased oil recovery (IOR). Statoil is regarded as a world leader for capturing and storing carbon dioxide (CO2). Statoil's environmental flagship is CO2-deposition in the Sleipner area of the Norwegian North Sea, where roughly 1 million tonnes of CO2 has been injected into the sub-surface since 1996. Statoil will implement a similar project when production begins later this year from the group's operated Snohvit-field in the Barents Sea.
As a public company with shares listed on the Oslo Stock Exchange and New York Stock Exchange (American Depositary Receipts), the operation of Statoil adheres to all applicable securities regulatory authority and stock exchange requirements, including the applicable requirements of the United States Securities and Exchange Commission concerning corporate governance. As of May 31, 2007, the Norwegian State own 70.9 % of Statoil's outstanding share capital. The Norwegian State has stated that as one of its several shareholders, it will concentrate on issues relating to return on capital and dividend policy, emphasizing long-term profitable business development and the creation of value for all shareholders.
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