First Calgary Petroleums finalizes sale to Italian firm Eni S.P.A.

By The Canadian Press

CALGARY - First Calgary Petroleums (TSX: FCP.TO) announced Friday that it has finalized the terms of its sale to Italian energy producer Eni S.P.A.

The company said the deal, which received shareholder approval last month, is valued at $923 million or $3.60 in cash per common share.

First Calgary said it would redeem all of its nine per cent convertible bonds on Nov. 28 for a value of US$1,080 for each US$1,000 in aggregate face amount of outstanding bonds

The sale to Eni, a long-time player in North Africa, is expected to close by year's end.

First Calgary has operations and assets in the Berkine Basin of Algeria, with interests in two development projects - the Menzel Ledjmet East deposit and the Central Area Field complex.

First Calgary underwent an unsuccessful sales process in 2004, after which its stock plummeted from around $20 to as low as $2.

Failure to complete that transaction resulted in friction between First Calgary and Waterford Investment and Finance Ltd., a U.K.-based firm that currently owns about 18 per cent of First Calgary's shares.

In April, Waterford led a shareholder revolt that ultimately led to the resignation of chief executive Richard Anderson.