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  Home > Oil Gas News > Dynoil LLC Confirms it's Offer to Purchase Unocal

Dynoil LLC Confirms it's Offer to Purchase Unocal

Newport Beach, CA. (PRWEB) August 6, 2005 -- A. Vernon Wright, Chief Executive Officer of Dynoil LLC, (Dynoil), a Delaware Limited Liability Company, today confirmed that on July 14, 2005 the company made an offer to purchase all of the outstanding equity of Unocal Corporation (“Unocal”). The offer informed Unocal that Dynoil intended to make an all cash offer to purchase all the outstanding equity securities of Unocal. Thereafter, Dynoil intends to convert Unocal from a publicly-traded company to a privately-owned subsidiary of Dynoil. In connection with this transaction, Dynoil intends to assume certain debt in accordance with provisions of the individual secured instruments.

Due to Unocal’s recent sale of certain Canadian assets and the entry of certain Consent Decrees or Orders, the purchase price at the time of the offer could not be ascertained with certainty. The purchase price will depend on other factors associated with the previously approved offer from Chevron. Notwithstanding the lack of a fixed purchase price, Dynoil intends to offer a price substantially higher than the offer currently accepted by the Board of Directors of Unocal relating to Chevron. Additionally, Dynoil believes its offer will be more attractive than the rejected all cash proposal by CNOOC Limited. The final terms of the offer would be negotiated between the Board of Directors of Dynoil and Unocal.

Dynoil confirmed that it had no plans to change current management or employment levels of Unocal. Dynoil confirmed that it plans to maintain all retirement and pension plans currently existing for Unocal employees. Dynoil will use its best efforts to continue to comply with state and federal regulations relating to the operations of Unocal.

The offer to negotiate a price provided that the transaction would be contingent upon:

(i)Completion of each company’s satisfaction of a comprehensive due diligence investigation, including, without limitation, all procedures normally encompassed by a due diligence. Dynoil confirmed that it was prepared to enter into a confidentiality agreement in this regard.

(ii) Preparation of a definitive purchase agreement satisfactory to both parties and their legal advisors, containing the substance of matters set forth in the Letter of Intent and such additional covenants, representations and warranties as are appropriate; and

(iii) The approval of the Securities and Exchange Commission and any other necessary state or federal regulatory approvals.

(iv) The definitive agreement would be construed and interpreted under the laws of the State of Delaware.

Dynoil confirmed that it was prepared to immediately negotiate the terms of a Definitive Agreement with the Board of Directors of Unocal Corporation.

The Letter of Intent was signed by Gary C. Wykidal, Esq., Attorney on behalf of Dynoil LLC.

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