Daily Telegraph (UK: Gas group slumps as Algeria sale grinds on: “Investors now look unlikely to receive a cash windfall from one of the eight groups, thought to include Shell, Total and BG.” (ShellNews.net) 19 April 05
By Christopher Hope, Business Correspondent (Filed: 19/04/2005)
First Calgary Petroleums yesterday saw its shares slump 16pc after traders were disappointed by a lukewarm update from the Canadian oil and gas exploration company on the progress of the sale of its Algerian gas field.
First Calgary announced over the weekend that it had received "a number of complex proposals for the company or its assets" by last Thursday and that there would be more news "over the next few weeks". The sale of its 13.5trillion cu bic feet field has been billed as one of the biggest gas deals of the year.
Investors were disappointed, however, that the company was not able to be more bullish about the sale process that has been ongoing since autumn. The shares closed down 120 at 625p after falls on the Canadian stock market on Friday.
Investors now look unlikely to receive a cash windfall from one of the eight groups, thought to include Shell, Total and BG. One analyst said: "It is not just a cash sum auction. There is not going to be a lump sum figure."
A spokesman for First Calgary declined to comment on the share fall.
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