"Duke Energy Taps Into Canadian Gas Supplies With 20 Percent Acquisition of Canadian 88"
Monday March 20, 8:47 am Eastern Time
Company Press Release
SOURCE: Duke Energy Corporation
Duke Energy Taps Into Canadian Gas Supplies With 20 Percent Acquisition of Canadian 88
HOUSTON and CALGARY, Alberta, March 20 /PRNewswire/ -- Duke Energy (NYSE: DUK - news) and Canadian 88 Energy Corp. (Amex: EEE; TSE) announced today that the two companies have entered into an agreement whereby Duke Energy will make a strategic investment in Canadian 88 forming an ongoing alliance between the two companies. Under the terms of the investment Duke Energy will assume marketing of Canadian 88's natural gas production and seek to optimize the value of Canadian 88's gathering and processing assets.
Duke Energy will acquire approximately 25 million common shares of Canadian 88 from treasury at a price of $2 (CAN) per share. After the investment, Duke Energy will hold approximately 20 percent of the common stock of Canadian 88. Duke Energy will make the investment through its Duke Energy Hydrocarbons (DEH) subsidiary.
``Our investment in Canadian 88 adds value to Duke Energy's network business by enhancing our access to attractive natural gas supplies from both Western Canada and the Sable Island region,' said Brad Karp, president of DEH. ``This transaction highlights Duke Energy's wholesale portfolio management capabilities and demonstrates our ability to align natural gas supply to our growing portfolio of power generation and commodity energy 'positions. We see superb value in the Canadian 88 natural gas assets and are looking forward to working with the excellent Canadian 88 team and assisting them with optimizing the value of the assets for both companies.'
``I am delighted to have Duke Energy on board with Canadian 88,' said Greg Noval, current president and chief executive officer (CEO) of Canadian 88. ``Their investment allows Canadian 88 to fully exploit those plays in which we have heavily invested at the front end as well as continue to pursue our exciting exploration opportunities.'
Canadian 88 has a world-class exploration inventory of natural gas plays in some of the highest impact regions of North America including the Alberta Foothills and the prodigious Sable Island deepwater areas. Canadian 88 has a highly talented technical staff that has one of the most successful track records in the western sedimentary basin.
In Canada, Duke Energy is a leading provider of industrial energy services, has one of the largest natural gas marketing and trading operations and through a joint venture, operates a sizable Canadian midstream business. Duke Energy is also part owner and an operator of the Maritimes & Northeast Pipeline that delivers Sable Island gas to market.
As part of the agreement, Joseph Pritchett III, current executive vice president of DEH, will resign that position and become president and CEO of Canadian 88, and the Canadian 88 board of directors will be reconstituted. James D. Raymond will remain chairman of the new board and Greg Noval, current Canadian 88 president and CEO, and John Panneton will remain board members. Joining the board in addition to Pritchett will be Don Gardner, current Canadian 88 chief financial officer, and John Burns Q.C., a senior partner at the law firm of Bennett Jones. Duke Energy will appoint two directors to the board and an additional independent director will be jointly appointed taking the new Canadian 88 board of directors to a total of nine.
Duke Energy, a diversified multi-national energy company, creates value for customers and shareholders through an integrated network of energy assets and expertise. Duke Energy manages a dynamic portfolio of natural gas and electric supply, delivery and trading businesses -- generating revenues of nearly $22 billion in 1999. Duke Energy, headquartered in Charlotte, N.C., is a Fortune 100 company traded on the New York Stock Exchange under the symbol DUK. More information about the company is available on the Internet at: www.duke-energy.com .
Canadian 88 Energy Corp. (EEE) is an independent public oil and gas company with its head office in Calgary, Alberta, Canada. The shares of Canadian 88 Energy Corp. are traded on the Toronto and American Stock Exchanges.
The information contained herein has neither been approved nor disapproved by the New York, Toronto, Canadian Venture and American Stock Exchanges.
SOURCE: Duke Energy Corporation
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