Anadarko to buy Berkley Petroleum for $1 billion, thwarting Hunt's bid

HOUSTON, Feb. 13�Anadarko Petroleum Corp. said Monday it will acquire Berkley Petroleum Corp., Calgary, at a cost of more than $1 billion.

It will pay $11.40/share (Can.) in cash for an equity value of $777 million (US) and assume Berkley debt estimated at $250 million (US).

Berkley had rejected previous offers from Hunt Oil Co. Berkley's Canadian assets will become part of Anadarko's existing Canadian company, Anadarko Canada Corp., headquartered in Calgary.

Robert J. Allison, Jr., Anadarko chairman and CEO, said, "This is a great deal for Anadarko shareholders. It fast tracks growth of our Canadian natural gas business. In addition to being a good fit with our existing strategy, the deal meets our basic criteria because it is accretive to earnings, cash flow, and growth.''

Berkley Petroleum is an exploration and production company with 95 million boe of reserves, about 70% gas, in Western Canada. Production is 10,900 b/d of oil and 116 MMcfd. It has 140 employees.

Michael Rose, Berkley president and CEO, said, "We are pleased with this offer from Anadarko, a well-respected oil and gas exploration company, with a corporate culture similar to that of Berkley."

After the merger, Anadarko will hold 4.7 million acres net (3.5 million undeveloped net, 1.2 million developed net) in Canada.

Jim Emme, president of Anadarko Canada Corp., said, "Since the merger with Union Pacific Resources last year, Anadarko has implemented plans to grow its Canadian gas reserves. This deal accelerates our long-term strategy by at least 3 years."