ALBERTA — Calgary’s Total E&P Canada, a subsidiary French oil company Total, has launched a takeover bid for UTS Energy, whose chief asset is a 20% interest in the Fort Hills oil sands development. The all cash offer is worth close to $617 million or $1.30 per share. The offer is approximately 57% over the closing price of UTS’s shares on Jan. 27, 2009. The takeover is subject to Total acquiring at least two-thirds of the outstanding UTS shares and on regulatory approval.
The acquisition of a share of the Fort Hills project would complement Total’s other interests, 74% of the Joslyn project and 60% of the Northern Lights project, in the Athabasca Basin north of Fort McMurray. Total is currently reanalyzing the costs, technology choices, structure and schedule of the Joslyn mine. Engineering studies for an upgrader in Edmonton is also underway.
Total also holds a 50% interest in the Surmont lease south of Fort McMurray.
More information is available at www.Total-EP-Canada.com.