Gulf Canada plans to list RI subsidiary

Gulf Canada plans to list RI subsidiary

CALGARY (Reuter): Gulf Canada Resources Ltd is expected to
spend C$2.25 billion this year and the company hopes to launch
the public offering of its Indonesian subsidiary in September to
finance the last part of the major outlay, Gulf chief executive
J.P Bryan said on Wednesday.

Bryan told reporters after the company's annual meeting that
the float of what is now called Gulf Indonesia Resources Ltd --
likely to be made on both the Jakarta and New York stock
exchanges -- would also boost the unit's remaining value for Gulf
Canada shareholders.

The current value does not reflect any exploration potential
or oil and gas fields coming on stream in the next three years,
he said.

"All we're getting in value for (the Indonesia assets) is the
current cash flow, which is no reflection of the value," Bryan
said. "It's like having a billion in cash invested at one percent
interest," he said.

Bryan said he would not argue with some analyst estimates that
placed the potential value of the assets -- the former Asamera
companies -- at C$2 billion.

Gulf Canada's Indonesian assets were bolstered with the
company's C$1.1 billion acquisition of Britain's Clyde Petroleum
earlier this year.

The takeover, which launched Gulf Canada's foray into the
North Sea, also added offshore assets and operating skills to
Gulf Canada's stakes in such developments as the Corridor and
Block A gas projects on Sumatra, Bryan said.

Apart from the Clyde acquisition, Gulf was expected to spend
C$1.15 billion this year exploring and producing in North America
and in other locales.