Anadarko Petroleum, Union Pacific Resources to merge
Anadarko Petroleum Corp. and Union Pacific Resources Group Inc. said April 3 that they will merge, creating "one of the largest independent exploration and production companies in the world in terms of 1999 reserves, production and drilling activity." The combined company will have a market capitalization of more than $9 billion and will be called Anadarko Petroleum Corp.
The stock-for-stock deal is subject to approval by shareholders of both UPR and Anadarko and customary regulatory approval. Following the merger, UPR will be a wholly owned subsidiary of Anadarko. Target closing date is July.
Robert J. Allison Jr. will continue to be chairman and chief executive officer of Anadarko. George Lindahl III, chairman, president and chief executive officer of UPR, will become vice chairman of Anadarko after the merger.
"This merger is an excellent fit for both companies," Allison said. "We blend Anadarko's strengths in exploration with what UPR does best -- profitable exploitation with industry-leading drilling and completion technology. The new Anadarko will have the financial strength to aggressively pursue a broader portfolio of projects. We can accelerate activity in the most prospective areas offering the best returns for shareholders. We do expect some modest cost reductions with the merger, but that's not what drives this deal. It's about complementary skills and assets that can give us dramatic growth and profitability. We expect to grow faster and beyond the levels either company could achieve individually. Given the current outlook for energy markets, now is the time to step up the pace of drilling for new energy reserves -- particularly North American natural gas."
Anadarko said the combined companies' proved reserves would be equally split between crude oil and natural gas and equivalent to 1.94 billion barrels of oil or about 11.65 trillion cubic feet of gas, with about 80 percent of total reserves in North America and 20 percent in international areas.
Anadarko is ARCO Alaska Inc.'s partner in the Alpine oil field currently being developed on the North Slope and in the Moquawkie gas field currently being explored on the west side of Cook Inlet. Anadarko also has an exploration agreement with the Arctic Slope Regional Corp. in the foothills of the Brooks Range.
State to issue supplement to Cook Inlet final finding
The Department of Natural Resources, Division of Oil and Gas, said March 31 that it will issue a supplement to the final finding of the director for the Cook Inlet areawide oil and gas lease sale. The finding was released Jan. 20, 1999.
The division said the supplement will contain new information related to the decision to re-offer acreage in Cook Inlet areawide 2000 oil and gas lease sale, tentatively scheduled to be held Aug. 16.
The proposed Cook Inlet areawide sale 2000 covers an area of approximately 4.2 million acres in the Kenai Borough, the Matanuska-Susitna Borough and the Municipality of Anchorage. There are 815 tracts ranging in gross area from 640 to 23,040 acres. The division will determine the exact amount of net leasable acreage in tracts after bids are received. The sale area contains all unleased, state-owned lands in the Cook Inlet area.
The division said it would issue a supplement to chapter three of the final finding based on information received after a Dec. 29, 1999, call for comments. The supplement and an instruction to bidders packet will be available May 2.
Commission postpones April 4 hearing on Midnight Sun
The Alaska Oil and Gas Conservation Commission has postponed an April 4 hearing requested by ARCO Alaska Inc. to establish pool rules for the Midnight Sun Pool in the Prudhoe Bay field. No new date has been set.