Conoco Canada Resources to acquire Gulf Indonesia

Petroleum News Alaska

Conoco Canada Resources Limited, a wholly owned subsidiary of Conoco Inc., and Gulf Indonesia Resources Ltd. said May 28 that a special committee of the board of directors of Gulf Indonesia will recommend that the full board of directors of Gulf Indonesia approve a proposal by Conoco Canada to acquire all common shares of Gulf Indonesia not owned by Conoco Canada or its affiliates at a price of US$13.25 per common share in cash or US$329 million in aggregate.

Conoco Canada currently owns approximately 72 percent of the outstanding common shares of Gulf Indonesia. Conoco Canada’s acquisition of the minority shares of Gulf Indonesia will allow Conoco to optimize its operations in Southeast Asia.

Conoco Canada’s proposal represents a 23 percent premium to the closing price of Gulf Indonesia common shares on May 24, 2002, and a 21 percent premium over Gulf Indonesia’s average closing price for the 30 days prior to the proposal.

The proposal also represents a 74 percent premium over Gulf Indonesia’s closing price on May 25, 2001, one day prior to the date Conoco publicly announced its acquisition of Gulf Indonesia’s parent, Conoco Canada, formerly Gulf Canada Resources Ltd., which at that point held approximately 72 percent of the outstanding common shares of Gulf Indonesia.