Burlington Resources Acquires Canadian Hunter Exploration

Independent energy producer Houston-based Burlington Resources Inc. has agreed to buy natural gas concern Canadian Hunter Exploration Ltd. for US$2.1 billion. The transaction is an all-cah offer at $53 per Canadian Hunter common share for all of the issued and outstanding common shares on a fully diluted basis. The deal is expected to close on November 19, 2001, and most importantly the trading must be suspended for 10 days.

The unique aspect of this transaction is the inclusion in the conditions of the offer that there must not have occured and be occurring at the date that Burlington takes up and pays for the common shares any general suspension in trading, a general banking moratorium or suspension of payments, or a limitation on the extension of credit by banks or other financial institutions. This condition is referred to as a "disaster out" condition, and is expected to become common in banking and financing transactions.

Burlington was represented by Burnet, Duckworth & Palmer LLP. Grant Zawalsky was assited by Steve Chetner, Miles Pittman, Alicia Quesnel, Jody Wivcharuk, John A. Brussa, Ian Bock, Gina A. Ross and Arlene Strom. Bennett Jones LLP represented Canadian Hunter. The Bennett Jones team was led by Robert Lehodey, who was assisted by John MacNeil, Took Whiteley, Don Greenfield, Michael Boehm, John Gilmore and Beth Riley.