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.