Total Increases Offer Price For Synenco Energy
Major Shareholders Commit to Tender
TOTAL S.A.
Total (Paris:FP) (LSE:TTA) (NYSE:TOT) announces that Total E&P Canada Ltd.
('Total Canada') has increased the offer price for the issued and outstanding
common class 'A' voting shares (the 'Common Shares') of Synenco Energy Inc.
('Synenco') from Can. $9.00 in cash to Can. $10.25 in cash per share pursuant to
its offer and take-over bid circular dated May 13, 2008, as extended by notices
of variation dated June 19, 2008, July 4, 2008 and July 16, 2008. The increased
offer price represents a premium of approximately 32% over the closing price of
Can. $7.79 for the Common Shares on the last trading day prior to the
announcement of the original offer.
As a result of the increase of the offer price, Total Canada has entered into
lock-up agreements with each of D. E. Shaw Laminar Portfolios, L.L.C. and
Wellington Management Company, LLP, which collectively own approximately 23% of
the outstanding Common Shares pursuant to which they have agreed to tender to
the offer and not withdraw, except in certain limited circumstances, all of
their Common Shares.
Total Canada has extended the time in which Synenco shareholders may deposit
their Common Shares under the offer to 7:00 p.m. (Calgary time) on August 5,
2008.
All Synenco shareholders who tender their Common Shares to the offer will
receive the increased price for their Common Shares in the event that Total
Canada takes up Common Shares under the offer, including those shareholders who
have already tendered their Common Shares to the offer (which, on July 15th,
represented approximately 58% of the Common Shares). Shareholders who have
already tendered to the offer do not need to take any further action and will
automatically benefit of the new price.
Holders of Common Shares who have not yet deposited their Common Shares in
acceptance of the offer may tender such shares to the offer at any time prior to
7:00 p.m. (Calgary time) on August 5, 2008.
The board of directors of Synenco has unanimously determined that the offer, as
amended, is fair to Synenco shareholders and is in the best interests of Synenco
and its shareholders and unanimously recommends to its shareholders that they
accept Total's offer, as amended.
Total Exploration and Production in Canada
Total is the operator of the Joslyn Lease with a 74% interest. The project will
be mainly developed using surface mining technologies in two phases of 100,000
barrels per day each. A limited portion of the lease is already on stream using
SAGD technology (Steam Assisted Gravity Drainage). The production potential of
Joslyn is currently estimated at 230 000 barrels per day.
Total also holds a 50% interest in the Surmont lease, located about
60 kilometres southeast of Fort McMurray. Phase One has a capacity of 25,000
barrels per day and started producing in 2007. Phase One development will be
followed by Phase Two, which is slated for commercial start-up before the middle
of the next decade. Phase Two will reach plateau production of 75,000 barrels
per day, bringing production for both phases of Surmont to approximately 100,000
barrels per day.
Total's share of the aggregate production from Surmont and Joslyn should reach
more than 200,000 barrels per day in the next decade.
In addition, the Group has initiated the process to build an upgrader, in the
Edmonton area. Phase one of the Total Upgrader should process 140,000 barrels
per day of bitumen and could be commissioned before 2015. Phase Two should
increase total bitumen processing capacity to over 200,000 barrels per day.
Total is one of the world's major oil and gas groups, with activities in more
than 130 countries. Its 96,000 employees put their expertise to work in every
part of the industry - exploration and production of oil and natural gas,
refining and marketing, gas & power and trading. Total is working to keep the
world supplied with energy, both today and tomorrow. The Group is also a first
rank player in chemicals. www.total.com
TOTAL S.A.
Capital 6 001 006 208 euros
542 051 180 R.C.S. Nanterre
Jérôme SCHMITT
Philippe HERGAUX
Sandrine SABOUREAU
Laurent KETTENMEYER
Tel. : 33 (1) 47 44 58 53
Fax : 33 (1) 47 44 58 24
or
Robert HAMMOND (U.S.)
Tel. : (1) 201 626 3500
Fax : (1) 201 626 4004
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