Canadian Oil

[Arctec]

Petro-Canada buying interest in two Syrian gas fields


Wednesday, November 01, 2006

LONDON — Petro-Canada said Wednesday it has completed a deal to buy a 90 per cent interest in the Ash Shaer and Cherrife natural gas fields in central Syria for $54-million.

Under the agreement with a subsidiary of Marathon Oil Corp., Petro-Canada becomes operator of the gas fields and has the option to buy Marathon Oil's remaining 10 per cent within five years, subject only to approval by the government.

According to the terms of the production sharing contract, Petro-Canada is obligated to develop and produce an estimated 80 million cubic feet per day of natural gas from the Ash Shaer and Cherrife fields, with first gas expected to be delivered in 2010.

Petro-Canada shares traded Wednesday at $47.17, down 71 cents, at the Toronto Stock Exchange.