Gulf Canada files for Indonesia IPO unit

Gulf Canada files for Indonesia IPO unit

CALGARY (Reuter): Gulf Canada Resources Ltd said yesterday it
filed for a much-anticipated initial public offering of its Gulf
Indonesia Resources unit, operator of the company's extensive
Indonesia oil and gas operations.

Gulf said in its statement to the U.S. Securities and Exchange
Commission it planned to issue 21 million common shares, of which
14.2 million would be offered by Gulf Indonesia and 6.8 by parent
firm Gulf Canada.

Underwriters would also have the option of acquiring an
additional 3.15 million shares owned by Gulf Canada to cover
over-allotments, the company said.

Gulf said the shares would be priced between US$17 and US$23,
but a final decision on price would not be made until the end of
September.

Including over-allotments, the issue would be valued as high
as US$555 million and as low as US$411 million.

Gulf Chief Executive J.P. Bryan first announced his intention
to float part of Gulf Indonesia, formerly Asamera, during his bid
for U.K. oil firm Clyde Petroleum late last year.

After the issue, to initially be floated on the New York Stock
Exchange under the symbol GRL, Gulf Canada will own 66.5 million,
or 76 percent, of the unit's 87.5 million outstanding shares if
over-allotments are not exercised, it said.

Gulf also said it would seek a listing for the shares on the
Jakarta Stock Exchange.

A portion of the offering's net proceeds to Gulf Indonesia
will be used to repay debt to its parent firm of about US$100 and
pay a US$68 million special dividend to Gulf Canada, the company
said.

The rest would be used to partly fund Gulf Indonesia's capital
spending.

Meanwhile, net proceeds to Gulf Canada for the sale of its
Gulf Indonesia shares, the loan repayment from the Indonesia unit
and the special dividend would be used to pay down own sizable
debt, it said.

Gulf said the transaction would include an offering in the
United States managed by Goldman, Sachs & Co, Morgan Stanley Dean
Witter and Salomon Brothers Inc, as well as an international
offering managed by Goldman, Sachs (Asia) LLC, Morgan Stanley
Dean Witter, ING Barings and Jardine Fleming.

Earlier on Thursday, Gulf announced that won 90 percent of the
shares of Stampeder Exploration Ltd in its friendly C$1-billion
offer for the Canadian oil producer.

Gulf shares in Toronto closed up 0.35 to 11.35, on volume of
nearly 2.4 million shares.