Unocal's Northrock Unit Completes Acquisition of Tethys
Unocal Corporation's Northrock Resources Ltd. subsidiary has successfully completed the terms of its offer for all of the common shares of Tethys Energy Inc. Northrock has taken up all of the shares deposited under the bid. Shareholders of Tethys will receive C$4.25 (US$2.76) for each Tethys common share deposited.
Northrock has directed the depositary for the bid, Computershare Trust Company of Canada, to mail payment for the Tethys common shares deposited under the bid in the next three days.
Approximately 96 percent or 31 million Tethys common shares were tendered. Northrock intends to exercise its statutory right to acquire the additional Tethys common shares not tendered to the bid for the same consideration paid pursuant to the offer.
Based on an independent reserve report and successful exploration and development activity in 2001, Tethys has proved reserves (U.S. basis) of 12 million barrels-of-oil equivalent (BOE) on a 6:1 net basis. More than 60 percent of the reserves are liquids-rich natural gas. Tethys' current production is 4,600 barrels-of-oil equivalent (6:1 net basis) per day, including 16 million cubic feet per day of natural gas production.