Barrick Gold Corporation

Barrick Gold Corporation

August 06, 2008 12:32 ET

Barrick Consolidates Sturgeon Lake Oil Assets

TORONTO, ONTARIO--(Marketwire - Aug. 6, 2008) -

All amounts expressed in Cdn. Dollars unless otherwise indicated

Barrick Gold Corporation (NYSE:ABX)(TSX:ABX) announced today that it has entered into a definitive agreement to purchase oil and gas assets representing production of approximately 900 barrels of oil equivalent (BOE) per day at Sturgeon Lake, Alberta, from Daylight Resources Trust for $87.5 million in cash. This transaction follows Barrick's recent $410 million cash offer for Cadence Energy Inc. and complements the Company's long term strategy to economically hedge its oil exposure.

Daylight's Sturgeon Lake assets are adjacent to Cadence's Sturgeon Lake assets. Barrick will consolidate 100 per cent ownership of the Sturgeon Lake South Leduc pool for the first time since 1953, which will allow for its cost-effective and timely exploitation and development.

This transaction will bring Barrick's total oil and gas production up to approximately 4,500 BOE per day, which represents about 30 per cent of the Company's direct annual fuel consumption.

Barrick's vision is to be the world's best gold company by finding, acquiring, developing and producing quality reserves in a safe, profitable and socially responsible manner.

Barrels of Oil Equivalent

"BOE" means barrel of oil equivalent on the basis of 1 BOE to 6,000 cubic feet of natural gas. BOEs may be misleading, particularly if used in isolation. A BOE conversion ratio of 1 BOE for 6,000 cubic feet of natural gas is based on an energy equivalency conversion method primarily applicable at the burner tip and does not represent a value equivalency at the wellhead.


Certain information contained in this Press Release, including any information as to our strategy, plans or future financial or operating performance and other statements that express management's expectations or estimates of future performance, constitute "forward-looking statements". All statements, other than statements of historical fact, are forward-looking statements. The words "believe", "expect", "will", "anticipate", "contemplate", "target", "plan", "continue", "budget", "may", "intend", "estimate" and similar expressions identify forward-looking statements. Forward-looking statements are necessarily based upon a number of estimates and assumptions that, while considered reasonable by management, are inherently subject to significant business, economic and competitive uncertainties and contingencies. The Company cautions the reader that such forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause the actual financial results, performance or achievements of Barrick to be materially different from the Company's estimated future results, performance or achievements expressed or implied by those forward-looking statements and the forward-looking statements are not guarantees of future performance. These risks, uncertainties and other factors include, but are not limited to: risks associated with the oil and gas industry in general such as operational risks in development, exploration and production, future well production rates, the performance of existing wells, the success of drilling new wells, delays or changes in plans with respect to costs and expenses, commodity prices and exchange rate fluctuation, marketing and transportation, environmental risks, competition, ability to access sufficient capital from internal and external sources and changes in tax, royalty and environmental legislation. Additional factors that could affect the Company's operations or financial results are discussed in greater detail in the Company's most recent Form 40-F/Annual Information Form on file with the U.S. Securities and Exchange Commission and Canadian provincial securities regulatory authorities.

The Company disclaims any intention or obligation to update or revise any forward-looking statements whether as a result of new information, future events or otherwise, except as required by applicable law.

Contact Information

  • INVESTOR CONTACT: Deni Nicoski
    Vice President, Investor Relations
    (416) 307-7410
    MEDIA CONTACT: Vincent Borg
    Senior Vice President, Corporate Communications
    (416) 307-7477