Dominion Energy Substantially Completes Acquisition
of Remington Energy
RICHMOND, Va. -- Dominion Energy Inc. announced late yesterday
that it has substantially completed its purchase of Remington Energy Ltd., a
publicly-traded natural gas exploration and production company headquartered
in Calgary, Alberta, Canada.
Dominion Energy received tenders for approximately 24.5 million
Remington common shares, representing approximately 93 percent of the outstanding
Remington common shares. Dominion Energy will institute statutory procedures
which will enable it to acquire 100 percent of the Remington common shares shortly.
Dominion Energy will take up shares on March 31, 1999. Total
consideration for all of the shares is approximately US$33 million. The company
also assumes approximately US$260 million in total Remington debt.
Thomas N. Chewning, president and chief executive officer
of Dominion Energy, said:
"With the addition of Remington Energy to Dominion’s
portfolio of natural gas assets, we advance our long-term growth strategy with
increased production and enhanced reserves in our fourth core area of operations.
This acquisition further strengthens our platform to serve the growing energy
needs of the Midwest-to-Northeast quadrant of the U.S., which accounts for 40
percent of the nation’s demand for energy."
Dominion Energy estimates that its daily natural gas and
oil production now totals more than 350 million cubic feet equivalent. Its reserves
now total approximately 1.2 trillion cubic feet equivalent. The company has
operations in four core areas: Canada, Michigan, the Appalachian Basin and the
Rocky Mountain region.
In addition to its natural gas businesses, Dominion Energy
has ownership and operating interests in 24 competitive power facilities throughout
the U.S. and Latin America.
Dominion Energy is the natural gas and competitive power
subsidiary of Dominion Resources Inc. (NYSE:D), a US$18 billion holding company
also active in regulated electric power and financial services. It is headquartered
in Richmond, Va.
Dominion Energy announced its plans to purchase Remington
Energy, a publicly traded natural gas exploration and production company based
in Calgary on February 23, 1999.
Dominion Energy’s offer is being made through DEI Canada
Holding Company Inc., a wholly-owned subsidiary.
