Anadarko Petroleum Corp. (NYSE: APC) has won in a bid for Gulfstream Resources Canada Ltd. (Toronto: GUR) against an unsolicited offer by Australian independent Roc Oil Co. Ltd. "The Gulfstream properties provide Anadarko with production and exploration in the Middle East, which offers a world-class petroleum system with high exploration success rates and low finding and developing costs. These properties give us a solid base from which to grow production from existing fields and from future exploration," says Anadarko president John N. Seitz. Anadarko's C$2.65-per-share cash offer is a 62% premium over Gulfstream's 30-day average closing price. It also is substantially more than the C$1.10-per-share that ROC offered in April. Gulfstream chairman Angus McKee says, "It is a very clean deal. It allows an immediate cash return, with a significant premium for our shareholders. And it is a fair offer that weighs values, risks and opportunities." CIBC World Markets Inc. advised Gulfstream in the deal. The purchase will add an estimated 70 million BOE of proved reserves and 4,700 BOE per day of production in Qatar and Oman to Anadarko's worldwide portfolio. The company already has more than 2 billion BOE of proved reserves and reported 522,000 BOE per day of production. In addition to domestic operations in Texas, Louisiana, the Midcontinent, Rockies, Alaska and the Gulf of Mexico, Anadarko is active in Canada, Algeria, Tunisia, West Africa, Venezuela, Georgia and the North Atlantic. Roc did not counter Anadarko's offer. "We really meant it when we said that if a higher bidder came along, we would wish it well," says John Doran, Roc chief executive officer. "In a risk-reward context, we equate this with drilling a dry hole-although more value was created, the cost was a lot less and the process was a whole lot more enjoyable. Roc will continue to look at new and existing projects for its next, sensibly contrary, value opportunity."
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