Conoco Canada Resources commences tender offer for Gulf Indonesia

Conoco Canada Resources Limited, a wholly owned subsidiary of US oil major Conoco Inc., and Gulf Indonesia Resources Limited announced Wednesday that Conoco Canada had commenced a takeover bid for all of the outstanding shares of Gulf Indonesia not owned by Conoco Canada at a price of U.S.$13.25 per common share in cash or US$329 million in aggregate.

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Conoco Canada currently o 72 percent of the outstanding common shares of Gulf Indonesia, while the remaining 28 percent is held by investing public. Gulf Indonesia is traded publicly on the New York Stock Exchange

Earlier, the board of directors of Gulf Indonesia had approved and supported the tender offer and recommend that shareholders of Gulf Indonesia accept the Conoco Canada?s offer.

The Offer represents a 23 percent premium to the closing price of Gulf Indonesia common shares on May 24, 2002, the last trading day prior to the announcement of the Offer, and a 21 percent premium over Gulf Indonesia's average closing price for the 30 days prior to, and including, May 24, 2002.

The Offer is scheduled to expire at 6:00 p.m. New York time, July 19, 2002, unless the Offer is extended, said Conoco Canada and Gulf Indonesia in a statement.

Gulf Indonesia is currently Indonesia?s non-LNG gas producer with oil and gas interests spanning from Southern part of Sumatra to East Java, while Conoco Indonesia focuses on oil and gas developments offshore West Natuna.(alex)