CNPC's C$499 Million Deal Still Valid

Source: Reuters 8/24/2009, Location: Africa
Oil & Gas Companies

China National Petroleum Corp's CNPET.
UL C$499 million ($462 million) agreement
to acquire Canada's Verenex Energy Inc
remains in effect, though the deal was
to expire today, Verenex's chief financial
officer said on Monday. Though Libya's
government has said it may pre-empt the
deal - which would see CNPC's international
arm buy the Canadian firm for its oil
properties in the North African country -
the agreement remains valid until either
party cancels it, said Verenex CFO Ken Hillier.

"Today is the outside date for the acquisition
agreement, but it doesn't terminate until
one party actively terminates it," Hillier said.
"We certainly have no intention of doing so
and we've heard nothing from CNPC to that effect.
" Verenex, a small Canadian oil producer that has
concentrated on finding oil in Libya, agreed in
February to sell itself to CNPC for C$10 a share.

However Libya balked at the deal and said it may
exercise its right of first refusal and buy Verenex's
operations itself. Verenex has been in negotiations
with Libya but those discussions have yet to result
in a solution for either the company or the North
African country.



The talks "are amicable and both parties
wish to avoid arbitration and reach a solution,
" Hillier said. "We're there to reach a deal
but as far as timing goes I can't speak to
that. They certainly don't have a timetable
they've relayed to us."