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ENERGY: Norway’s Statoil to acquire Calgary-based North American Oil Sands Corporation (NAOSC)

          (AlbertaIndex, April 30, Monday) --- Norway’s Statoil ASA will make an all-cash offer to acquire all shares of TSX-listed-North American Oil Sands Corporation (NAOSC) at C$20 per share in a deal worth C$2.2 billion, the two companies announced last week.

         Established in 2001, NAOSC operates 257,200 acres (1,110 square kilometres) of oil sands leases located in the Athabasca region, north-east of Edmonton.
        
NAOSC’s board has unanimously approved the offer, recommending that its shareholders accept the offer. The three principal shareholders of NAOSC - Paramount Resources Ltd, funds managed by affiliates of ARC Financial Corporation and Ontario Teachers’ Pension Plan - have agreed to tender all of their shares to the offer. They represent approximately 69% of the issued and outstanding shares on a fully diluted basis.
          “Today’s acquisition is an important strategic move which supports our global growth ambition and increases our reserve bookings in the long term,” said Helge Lund, Statoil’s chief executive.
          “We will become operator and get access to large recoverable resources that will add to our production post 2010. We are developing our global heavy oil portfolio and strengthening our marketing position in North America.”
          Heavy oil production is energy intensive and challenging in an environmental perspective.
          “We will utilise our experience in developing resources in a sustainable manner, applying technology solutions that minimise environmental impact,” said Mr Lund. “We are excited to have secured this agreement and look forward to creating value by leveraging on our key competences such as improved oil recovery (IOR) and large project execution skills.”
          NAOSC’s leases hold approximately 2.2 billion barrels in recoverable reserves. Statoil believes that by applying its broad technological competence developed through 30 years of experience on the Norwegian continental shelf, there is a potential for increasing the recoverable reserve base.
          A pilot production scheme, the Leismer demonstration project, is currently in its final phase of obtaining regulatory approvals. It will have a capacity of 10,000 barrels of produced bitumen per day and first production is expected late 2009/early 2010.
          The first phase of the commercial project, Kai Kos Dehseh, is due to come onstream in 2011, ramping up production to around 100,000 b/d in the middle of the next decade. It is expected to yield more than 200,000 b/d by the end of the next decade.
Mr Lund said: “Combined with Statoil’s experience and commitment to prudent operations, we are well-positioned to develop the resources in a sustainable manner, creating value for Statoil and its shareholders.”
          The offer is subject to regulatory approvals and other customary conditions contained in the formal offer documents. Full details of the offer will be included in a takeover bid circular and related documents which will be filed with securities regulators and mailed to NAOSC security holders by May 15. The transaction is expected to close by the end of this quarter.

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