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Oil companies pump up
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December 23, 1997: 6:14 a.m. ET
Ocean Energy, United Meridian combine to create $3.1 billion firm
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NEW YORK (CNNfn) - Ocean Energy Inc. and United Meridian Corp. said Monday they will merge in a deal which creates a $3.1 billion energy company.
The newly formed oil and gas exploration and production firm will be the ninth largest oil company in the world after the stock swap is completed.
United Meridian shareholders will convert their stocks into 1.3 shares of the new company while Ocean Energy shareholders will get 2.34 shares. After completion, Ocean Energy shareholders will control 53.6 percent of the company while United Meridian holders will have 46.4 percent.
The new company will be known as Ocean Energy Inc.
The company will pump about 58,000 barrels of oil and 350 million cubic feet of gas daily. About 80 percent of the new firm's oil reserves will be in North America with the rest overseas, particularly in West Africa and Asia.
"The combined company will leverage both companies' considerable strengths in exploration and exploitation and create new opportunities for strategic expansion," said United Meridian Chairman John Brock.
He added that he hoped the larger company would allow more large-scale exploration operations.
The deal is expected to be completed by the end of March 1998.
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