Bitech Petroleum to Acquire Vanguard Oil

Bitech Petroleum Corporation entered into an agreement on March 19, 2001 to acquire all the common shares of Vanguard Oil Corporation subject to, among other things, the approval of the shareholders of Vanguard. In addition, Bitech provided an immediate short-term loan to Vanguard to allow Vanguard to meet its working capital needs. Vanguard’s board of directors unanimously recommended that shareholders vote in favour of the transaction. The transaction has a market capitalization of US$55 million.

Bitech, which acquires and develops oil and gas properties, has been focused principally in Russia. Vanguard is actively engaged in the acquisition, exploration and development of oil and gas concessions in Egypt, Colombia, Morocco and Tunisia.

Bitech was advised by a team led by David Glennie of Blake, Cassels & Graydon LLP’s London office and consisting of Bob Wooder and Kate McGilvray, as well as Brock Gibson, Pat Finnerty, Ben Rogers (corporate/securities), and Dan Fournier and Warren Nishimura (banking) of Blakes’ Calgary office. Bill Maslechko, Grant Zawalsky and Arlene Strom (corporate/securities), and Trish Fehr (banking) of Burnet, Duckworth & Palmer LLP in Calgary represented Vanguard.