El Paso Corp. (ticker: EP, exchange: New York Stock Exchange (.N))
News Release -
El Paso Oil & Gas Canada Acquisition, Inc. Mails Offer to Acquire Velvet Exploration, LTD.
HOUSTON, TEXAS, June 28, 2001—El Paso Corporation
(NYSE:EPG) announced today that on June 25, 2001 its indirect wholly owned
subsidiary, El Paso Oil & Gas Canada Acquisition, Inc., mailed its
previously announced offer to acquire all the issued and outstanding common
shares of Velvet Exploration Ltd. (Velvet) (TSE:VLV) to the registered
shareholders of Velvet. The offer was previously announced on June 14,
Under the terms of the offer, Velvet shareholders tendering
their shares to the offer would receive C$8.15 in cash for each Velvet common
share. The offer is open for acceptance until 5:00 p.m. mountain standard
time on July 31, 2001 unless withdrawn or extended. It is conditional,
unless waived or amended by the offeror, upon, among other customary conditions,
there being validly deposited under the offer and not withdrawn at least 66.67
percent of the outstanding Velvet Shares (calculated on a diluted basis).
Lehman Brothers is acting as financial advisor to El Paso
on this transaction and is the soliciting dealer manager for the offer.
Applications for regulatory approval of the transaction
under the Competition Act and the Investment Canada Act of Canada
have been submitted by El Paso.
El Paso Corporation is committed to meeting energy needs
throughout North America and the world with operations that span the energy
value chain from wellhead to electron. The company is focused on speeding
the development of new technologies, such as clean coal and liquefied natural
gas, to address critical energy shortages across the globe. Visit El Paso
This release includes forward-looking statements and projections, made
in reliance on the safe harbor provisions of the Private Securities Litigation
Reform Act of 1995. The company has made every reasonable effort to ensure that
the information and assumptions on which these statements and projections are
based are current, reasonable, and complete. However, a variety of factors could
cause actual results to differ materially from the projections, anticipated
results or other expectations expressed in this release. While the company makes
these statements and projections in good faith, neither the company nor its
management can guarantee that the anticipated future results will be achieved.
Reference should be made to the company's (and its affiliates') Securities and
Exchange Commission filings for additional important factors that may affect