?Italian integrated energy company Eni SpA (NYSE: E) plans to acquire First Calgary Petroleums Ltd., Calgary, (Toronto: FCP, London Aim: FPL) for approximately C$923 million.


Eni will pay C$3.60 per share in cash and bondholders will receive 108% of par (plus accrued interest), representing a 52.5% premium to the closing price of C$2.36 on the Toronto Stock Exchange on Sept. 2 and a 59.2% premium to the 30-day weighted average.
The company is involved in exploration and development activities in Algeria with a 75% interest in the perimeter of Ledjmet (Block 405b) that includes several fields. Total resources are in excess of 1.3 billion BOE (50% gas).


Pro forma, Eni estimates its Algerian proved plus probable reserves will increase by approximately 190 million BOE. Production start-up is expected in 2011 with a plateau of Eni’s share of production of approximately 30,000 bbl. per day by 2012.


First Calgary president and chief executive Shane O’Leary says, “We will work with Eni to ensure a smooth transition and avoid disruptions to the project. We believe the resources and expertise that Eni can bring to this project should accelerate the development.”


Eni chief executive Paolo Scaroni says, “The transaction is in line with our strategy of increasing our presence in our core countries, acquiring high-potential assets. We will utilize our well-established expertise and experience in Algeria to leverage operational synergies.”
JP Morgan Cazenove is advisor to First Calgary. The deal is expected to close by the end of the fourth quarter. Eni is active in 70 countries worldwide.

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