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Amerada Hess Corp. yesterday completed its $2.7 billion cash acquisition of exploration and production company Triton Energy Ltd. The deal included the absorption of about $500 million in debt.
Hess said on July 10 it would pay $45 a share for Triton, a 50 percent premium. The deal is part of Hess's shift to the more profitable exploration and production side of the business.
With the acquisition, Amerada Hess estimates that its third quarter oil production will rise from its original forecast of 418,000 barrels of oil equivalent per day to approximately 445,000 barrels per day. Fourth quarter production is expected to rise from the previously estimated level of 468,000 barrels per day to about 520,000 barrels per day.
Production in 2002 is now estimated at 535,000 barrels of oil equivalent per day and is expected to rise to more than 600,000 barrels per day in 2003. At least eight high potential wells will be drilled on properties acquired from Triton over the next 12 months.
Amerada Hess said that it expects that most of Triton's exploration staff and certain senior Triton executives will remain with Amerada Hess and that Triton's operations will continue to be based in Dallas.