Placer sells Canadian oil and gas assets to Poco, Amerada Minerals

As part of a plan to rid itself of non-mining assets, Placer Dome (TSE) has agreed to sell Placer CEGO Petroleum Holdings, its Canadian oil and gas subsidiary, to Opus Acquisition, a company owned by Poco Petroleums (TSE) and Amerada Minerals. In return for $305 million, Opus will receive all of Placer’s oil and gas properties, including proven reserves of 6.9 million barrels of oil, 1.8 million barrels of natural gas liquids and condensate, and 200 billion cu. ft. of natural gas. The assets include a number of key properties in British Columbia and Alberta, for example, Flatrock and East and West Eagle.

Poco will pay about $31 millon, or 10% of the purchase price, in return for 15-20% of the assets, said Poco Treasurer John Ferguson. Corona (TSE) owns a 49% stake in Poco, while Amerada Minerals is a wholly owned subsidiary of New York’s Amerada Hess (NYSE).

Placer said it considers oil and gas investments to be outside its core mining interests. Recently, the international mining company announced the US$336-million sale of its American oil and gas operations to a subsidiary of Unocal Corp. of Los Angeles. Placer expects to close the Canadian deal with Opus on Sept. 27, raising its holdings of cash and short-term investments to more than $1 billion.