Unocal Enters Agreement to Sell Canadian Oil and Gas Operations
July 11 2005 - 8:30AM
PR Newswire (US)
Unocal Enters Agreement to Sell Canadian Oil and Gas Operations EL
SEGUNDO, Calif., July 11 /PRNewswire-FirstCall/ -- Unocal
Corporation (NYSE:UCL) today said it has entered into a definitive
agreement to sell all of the outstanding stock of its wholly owned
Canadian subsidiary, Northrock Resources Ltd., to Pogo Producing
Company (NYSE:PPP) for US $1.8 billion in cash. Unocal expects to
realize after-tax proceeds from the sale of approximately US $1.5
billion. Northrock represents essentially all of Unocal's Canadian
oil and gas reserves and production. Based on the recent financial
reports, Canada accounted for less than 7 percent of Unocal's
worldwide hydrocarbon reserves (year-end 2004) and production (1Q
2005). Unocal said it expects to add the net proceeds from the sale
to its current cash and cash equivalents balance, which is
estimated to be approximately US $1.8 billion at the end of the
second quarter 2005. The estimated balance of total debt minus cash
and cash equivalents at the end of 2Q 2005 is approximately $740
million, down approximately $1,160 million from year end 2004. The
Northrock transaction, which is subject to customary Canadian
regulatory approvals, is expected to close in the third quarter
2005. About Unocal Corporation Unocal is one of the world's leading
independent natural gas and crude oil exploration and production
companies. The company's principal oil and gas activities are in
Asia and North America. This news release contains forward-looking
statements about matters such as the potential sale of certain of
Unocal's Canadian assets, expected after-tax proceeds from the
sale, potential uses of those proceeds and certain estimates of
Unocal's second quarter 2005 financial condition. Although these
statements are based upon Unocal's current expectations and
beliefs, they are subject to known and unknown risks and
uncertainties that could cause actual results and outcomes to
differ materially from those described in, or implied by, the
forward-looking statements, including the satisfaction of
conditions to completing the sale, including receipt of any
required regulatory or other approvals; and other factors discussed
in Unocal's 2004 Annual Report on Form 10-K and subsequent reports
filed or furnished by Unocal with the U.S. Securities and Exchange
Commission (SEC). Copies of Unocal's SEC filings are available from
Unocal by calling 800-252-2233 or from the SEC by calling
800-SEC-0330. The reports are also available on the Unocal web
site, http://www.unocal.com/. Unocal undertakes no obligation to
update the forward-looking statements in this news release to
reflect future events or circumstances. All such statements are
expressly qualified by this cautionary statement, which is provided
pursuant to the safe harbor provisions of Section 27A of the
Securities Act of 1933 and Section 21E of the Securities Exchange
Act of 1934. DATASOURCE: Unocal Corporation CONTACT: News Media,
Barry Lane, +1-310-726-7731, or Investors, Robert Wright,
+1-310-726-7665, both of Unocal Corporation Web site:
http://www.unocal.com/
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