Norsk Hydro ASA, Oslo, Norway, (NYSE: NHY) has closed the acquisition of Houston-based, Gulf-focused Spinnaker Exploration Co. (NYSE: SKE) for $65.50 per share, totaling $2.45 billion in cash, plus assumption of $110 million of net debt in a deal valued at $2.56 billion. Randall & Dewey, a division of Jeffries & Co., and Credit Suisse First Boston were advisors to Spinnaker. Spinnaker's production is some 23,000 barrels equivalent per day and its total reserves are 129 million barrels equivalent, all in the Gulf of Mexico. It has an extensive seismic database covering most of the Gulf and significant exploration acreage. It also has exploration positions in Nigeria. Hydro has current production of some 575,000 barrels equivalent per day. The acquisition was funded with cash on hand. Hydro now expects 2005-08 production to be 40% international.
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