CALGARY - TOTAL E&P CANADA is offering a 22% premium on shares of SYNENCO ENERGY, making a bid of $9/share. The proposed transaction has a total value of $478 million.
Chief among Synenco's assets is its 60% stake in the Northern Lights mining and extraction project in Alberta's oil sands. The company has plans to develop an operation that produces 114,500 bbl/d of bitumen over a 28-year period. The capital cost of the project was estimated two years ago at between $4.4 billion and $5.6 billion. Construction was to begin in 2009.
Total E&P Canada is a subsidiary of TOTAL, the French-based oil and gas producer. Total is also working on its Joslyn oil sands project approximately 50 km from the Northern Lights project.
For more on the Northern Lights project, visit www.Synenco.com. The Joslyn project is covered at www.Total-EP-Canada.com.
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