Oil and gas operations owned by Placer Dome (TSE) in the U.S. will be sold to the Prairie Producing group of companies of Houston, Tex., a subsidiary of Unocal Corp. of Los Angeles. The international mining company considers the oil and gas investments as being outside its core business.
The value of the proposed transaction is about US$336 million, which includes payment of US $251.5 million in cash for the stock of Prairie Holding Co., the assumption of certain liabilities and debt obligations, and the reimbursement of certain costs. The sale, subject to various consents and regulatory approvals, is to be completed no later than July 27.
Purchased by Placer Dome in 1984, Prairie Producing operates oil and gas interests in South Louisiana and Texas.
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