Newspaper article THE JOURNAL RECORD

Kerr-McGee Buying Maxus Energy Unit

Newspaper article THE JOURNAL RECORD

Kerr-McGee Buying Maxus Energy Unit

Article excerpt

A agreement for Kerr-McGee Corp. of Oklahoma City to purchase Maxus Energy Canada Ltd. for about $141.5 million was announced Wednesday.

Kerr-McGee's daily oil production in west Canada will triple and daily natural gas production in west Canada will double through the purchase of the Calgary company, a company spokesman said Wednesday.

Kerr-McGee said it signed a stock purchase agreement to acquire Maxus Energy Canada, a wholly owned subsidiary of Maxus Energy Corp. of Dallas. Maxus Energy Canada is headquartered in Calgary, with primary operations in Alberta and British Columbia. Kerr-McGee has had a presence in Alberta for several years.

"We believe in the oil and gas potential of west Canada," said Myron Cunningham, spokesman for Kerr-McGee.

"The most telling statement I can make is that the Maxus acquisition doubles our daily gas production and triples our daily oil production in Canada."

Production rates for the Maxus Energy Canada leases averaged 2,800 barrels of oil per day, plus 18 million cubic feet of natural gas per day in 1988. That will be added to current Kerr-McGee daily production rates in Canada of 150,000 barrels of oil and 19.4 million cubic feet of natural gas.

Included in the purchase are proved and probable reserves of 11.8 million barrels of oil and 93.3 billion cubic feet of natural gas, plus 261,000 acres of undeveloped leases.

The purchase is a continuing program within Kerr-McGee to strengthen its oil and natural gas reserves and increase daily production, Cunningham said.

Following a two-year struggle to recover from the energy bust, Kerr-McGee chairman Frank McPherson told The Journal Record in January the company was financially and organizationally positioned for expansion and acquisitions. …

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