ChevronTexaco to sell 13 producing fields in Canada for $800-mil

Washington (Platts)--25May2004

ChevronTexaco Tuesday said its North America Exploration and Production Co had
sold 13 producing fields in western Canada to Acclaim Energy Trust and
Enerplus Resources Fund for about $800-mil. The company said it expects to
record a significant gain to income when the sale closes, something it expects
will occur at the end of the second quarter or during the third quarter of
this year. The deal includes the sale of oil-and-gas producing properties in
the Northwest Territories, British Columbia, Alberta and Manitoba. "We're
rationalizing our upstream portfolio to strengthen our competitive position by
selling non-strategic assets and retaining those fields that represent
long-term value for ChevronTexaco," said company Vice Chairman Peter
Robertson. "Our strategy in North America is to streamline the portfolio to
include approximately 400 core fields that account for the vast majority of
current production and cash flows."

The company last year said was evaluating opportunities to divest certain
Canadian producing properties to improve performance of its North America e&p
portfolio. The company recently announced the sale of its EnerPro Midstream
assets in Alberta. The company said its portfolio-optimization program does
not affect "strategically significant" Canadian assets, including the
Athabasca Oil Sands Project; Mackenzie Delta gas, Canadian East Coast
exploration, development and production activities; or the company's refining
and marketing operations.

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