Total announced today that its offer to acquire all of the outstanding common shares of UTS Energy Corporation ("UTS") for C$1.75 cash per share (the "Offer") through its wholly-owned subsidiary, Total E&P Canada Ltd. ("Total Canada"), expired at 8:00 p.m. (Toronto time) on April 27, 2009.
At the time of expiry, the condition that there shall be at least 662/3% of the common shares (calculated on a fully-diluted basis) validly deposited under the Offer and not properly withdrawn at the expiry time (the "Minimum Condition") had not been met. The Offer is therefore terminated. Total Canada has instructed Kingsdale Shareholder Services Inc., the depositary for the Offer, to promptly return all deposited Common Shares in accordance with the Offer.
"While we believed that our Offer represented certainty and fair value for UTS shareholders, we acknowledge their decision," said Michael Borrell, President & C.E.O of Total Canada. "Total Canada remains committed to its current activities and investments in Canada and will continue to implement its willing strategy in the oil sands."
Total Exploration & Production in Canada
Total is the operator of the Joslyn project with a 74% interest. The project will be developed using surface mining technologies. The production potential of the project is currently estimated at more than 200,000 barrels per day.
Total also holds a 50% interest in the Surmont lease, located about 60 kilometres southeast of Fort McMurray. Phase One, which started in 2007, has a capacity of 27,000 barrels per day at plateau production and is currently producing 18,000 barrels per day. It will be followed by Phase Two which will bring total production to approximately 110,000 barrels per day. Future phases at Surmont are also under study.
In 2008, Total acquired Synenco Energy which held an interest in the Northern Lights project, and now holds 50% of the project.
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