pancanadian buys montana power note article gives strategy economics purchase montana power pan canadian look oklahoma reserves location strategy pipe switch ownership may receptive strategy changes lorna pancanadian says montana power purchase beautiful fit extend sees dominance canada natural gas market boost production 10 pancanadian petroleum ltd yesterday agreed purchase montana power co 475 million properties extend pancanadian existing shallow gas properties southern alberta northern montana adding 94 mmcf 3 800 barrels crude oil natural gas liquids acquisition give pancanadian properties alberta montana colorado oklahoma wyoming along three gas pipelines linking alberta saskatchewan montana focus natural gas said ceo david tuer conference call yesterday calgary clearly future difficult put negative acquisition likely stay valuable foreseeable future montana power production 90 natural gas associated liquids acquisition substantially extends pancanadian land infrastructure allowing use technology operating strategies region extends along alberta montana border montana power assets clearly fit strengths allow us employ expertise developing long life reserves shallow medium depth natural gas tuer said potential assets significant next years add substantially pancanadian daily natural gas production tuer said acquisition extends company dominance shallow gas called montana power beautiful fit pancanadian gas strategy land position technological capability pancanadian newest acquisition adds reserves 550 bcf 20 mm barrels oil natural gas liquids proven one half probable basis said officials production reserves account 520 million purchase price remainder made 135 million midstream marketing assets 40 million undeveloped land 600 000 acres 7 million working capital tuer said company paying 77 cents mcfe proven half probable reserves price daily flowing production based 6 1 ration gas boe 4 450 mcfe 26 710 boe along added alberta montana properties pancanadian also picks land colorado denver basin produces 31 mmcf land part sale located anadarko basin oklahoma green river basin wyoming three natural gas pipelines cross montana alberta saskatchewan also included pipelines allow direct access u markets southern alberta saskatchewan gas serve 1 2 million net acres developed undeveloped lands concentrated parcels span canada montana border midstream assets go pancanadian include natural gas marketing company butte mt along deep cut gas processing fractionation plant colorado fort lupton co plant processes 60 mmcf 5 500 barrels natural gas liquids condensate total developed undeveloped land roughly 1 2 million net acres 1 7 million gross acres said pancanadian montana power fit us like glove tuer said conference call said acquisition help pancanadian remain best class makes sandbox much bigger acquisition expected close around oct 31 increase pancanadian net income cash flow year subsequent years said tuer added gas production immediately increase company natural gas percentage total production 58 based 6 1 ratio gas boe 25 natural gas acquired montana power sold montana power utilities 1 50 1 60 mmcf july 2002 priced open market officials think future earnings good contract expires lot potential price transaction tuer said become montana power earlier year 88 year old company headquartered butte announced would divest four traditional energy businesses selling coal production natural gas transmission distribution independent power production oil gas exploration production businesses plans reinvest proceeds touch america fiber optics telecommunications business also subsidiary montana power process determine buyer oil gas business robust delighted result said montana power ceo robert p gannon believe meshing business strategies cultural synergy exist purchased companies pan canadian noted montana power canadian presence almost 50 years pancanadian purchased entire oil gas division employs 170 pancanadian plans maintain regional office butte invest acquired properties grow daily gas production word whether jobs would lost