Page 9

ARC Front final 3/4/02 9:25 AM Page 4

PAGE 4

F E AT U R E : M A N A G E M E N T E X P E R T I S E

A UNIQUE TRANSACTION

IN

2000,

WE

IDENTIFIED

STARTECH

AS

AN

ATTRACTIVE

ACQUISITION

OPPORTUNITY. THE COMPANY HAD HIGH QUALITY PROPERTIES WITH WELL DEFINED SYNERGIES WITH OUR EXISTING LANDHOLDINGS. HOWEVER, WE WERE UNWILLING TO PURCHASE STARTECH’S HIGHER-RISK EXPLORATION PLAYS WHICH FELL OUTSIDE OF OUR INVESTMENT CRITERIA.

WE APPROACHED STARTECH ’S MANAGEMENT WITH A UNIQUE PROPOSITION. ARC WOULD ACQUIRE THE COMPANY, BUT THE ASSETS WOULD BE SPLIT. THE HIGHERRISK EXPLORATION PLAYS WOULD GO TO A NEW COMPANY TO BE HELD BY STARTECH’S EXISTING SHAREHOLDERS. WE WOULD TAKE CONTROL OF STARTECH’S PRODUCING PROPERTIES, INCLUDING THE RESERVES AND ADJACENT UNDEVELOPED LANDS. THE OFFER WAS PARTICULARLY ATTRACTIVE AS IT CREATED A WIN/WIN SCENARIO FOR ALL PARTIES. STARTECH SHAREHOLDERS WOULD KEEP THE EXPLORATION UPSIDE, WHILE ARC WOULD ACQUIRE A LARGE BASE OF PRODUCTION, RESERVES AND UNDEVELOPED LANDS UNDER ATTRACTIVE TERMS FOR OUR UNITHOLDERS.

Photo: Susan Healy, Doug Bonner, John Dielwart, David Carey, Steve Sinclair, Myron Stadnyk ARC

ENERGY

TRUST

AR 2001

2001  

Annual Report

Read more
Read more
Similar to
Popular now
Just for you