poe article on possible takover bid

Rumor mill, with a write up....

Points to POE although suggestions are it could be, or might not be the company 'referred to'.

Make up your own mind !! taken from "The Economic Times" 20th May. POE rose 5% that day for no real reason, ann not due till ~ next week..



NEW DELHI: ONGC Videsh (OVL) — the foreign investment arm of ONGC — is in talks to take over a mid-sized listed Canadian oil company having hydrocarbon blocks including oil sand assets. OVL is negotiating to pick up 100% equity stake in the firm for an undisclosed sum.

The target company is engaged in energy sector with two production-sharing contracts (PSCs) in a third country. The acquisition would put OVL in a strategic position in the North American energy space. Code-named as “Project Crystal”, the target company is listed in TSX Venture Exchange in Canada and Stockholm Stock Exchange, Sweden. OVL, which is yet to begin due diligence, is tight-lipped about the company or the valuation.

Sources said the board of the company has approved submission of a non-binding bid for acquiring 100% shares of the company, registered in Canada. The Canadian firm, through its subsidiary in Bermuda, holds three oil fields in a third country under two PSCs. The acquisition, if it goes through, will give OVL a foothold in oil sands, which gained currency following the spike in global oil prices. Canada is known to have high deposits of oil sands which are now being explored as a viable source of hydrocarbons. With oil prices ruling at over $125 a barrel, several non-conventional hydrocarbon sources like gas hydrates in India are being researched.

It is learnt that OVL had made an earlier attempt to acquire the company. “In the first instant, the seller found OVL’s offer insufficient. It, however, invited OVL for further discussion with a revised offer,” a source said.

OVL has been aggressively pursuing energy interests in South and North America. It has significant portfolio of oil & gas assets in Colombia, Brazil, Venezuela and Cuba. In April this year, OVL signed an agreement with Venezuela’s national oil company PdVSA to pick up a 40% stake in the San Cristobal oilfield. Venezuela has also agreed to give two more blocks to the Indian company. OVL has hydrocarbon assets in Vietnam, Russia, Sudan, Myanmar, Iraq, Libya, Qatar, Egypt, Syria and Turkmenistan.