Petroleum Development Corporation to acquire Unioil
  by: OilOnline
  Friday, October 20, 2006

Petroleum Development Corporation has reached an agreement with Unioil to which PDC will make a cash tender offer to acquire all of Unioil's outstanding shares (9,541,469) for $1.91 per share, for a total transaction cost of $18,224,206. Currently, Unioil shareholders who collectively own approximately 82% of Unioil's outstanding shares, have agreed to tender their shares in the Offer. This acquisition is not considered suitable for treatment as "Like-Kind Exchange" property and funds, as previously announced, held in trust by J.P. Morgan for PDC under Section 1031 of the Internal Revenue Code, will not be used to consummate the transaction.

PDC will commence the Offer no later than November 3, 2006. The Offer will remain open for at least twenty business days pursuant to applicable rules of the Securities and Exchange Commission. The Offer is subject to the satisfaction of certain customary closing conditions. Promptly following the termination of the offering period, PDC expects to acquire any Unioil shares not tendered in the Offer for cash in an amount equal to the Offer price. Upon completion of the merger Unioil will become a wholly-owned subsidiary of PDC.