Plains All American Pipeline to Acquire CANPET Energy Group Inc.

Apr 11, 2001, 01:00 ET from Plains All American Pipeline, L.P.

    HOUSTON and CALGARY, Alberta, April 11 /PRNewswire/ -- Plains All American
 Pipeline, L.P. (NYSE:   PAA) has agreed to purchase CANPET Energy Group Inc., a
 Calgary-based crude oil and LPG marketing company for approximately
 US$42 million.  The transaction is subject to certain regulatory approvals and
 other customary closing conditions and is expected to close in approximately
 30 to 45 days.
     "The acquisition of CANPET will complement the pending acquisition of
 Murphy Oil Company Ltd's Canadian crude oil pipeline, gathering, storage and
 terminalling assets announced last month," commented Harry Pefanis, President
 and Chief Operating Officer of Plains All American.  "When fully integrated,
 the assets and activities from these two transactions will provide an
 attractive, synergistic platform on which to build and expand our presence in
 Canada and represents a meaningful step towards our goal of establishing a
 presence in Canada that is very similar to our presence in the U.S."
     CANPET currently gathers approximately 75,000 barrels per day of crude oil
 and markets approximately 26,000 barrels per day of natural gas liquids.
 Tangible assets include a crude oil handling facility, tankage of
 approximately 130,000 barrels and working capital of approximately
 $8.5 million.  The existing management team and staff of CANPET, led by Dave
 Duckett, will join Plains All American with the mandate to expand the
 Partnership's market share in Canada.
     "Based on historical performance and reasonable market conditions, we
 anticipate CANPET will contribute approximately $7.5 million to annual
 earnings before interest, taxes, depreciation and amortization ("EBITDA"),"
 added Greg L. Armstrong, Chairman and Chief Executive Officer of Plains All
 American.  "As we combine CANPET's operations with the assets and activities
 from the Murphy acquisition over the next 12 months, we expect to phase in
 cost savings and revenue synergies that should generate an additional
 $1.5 million to $2.0 million of annual EBITDA."
     Armstrong noted that the acquisition is expected to be accretive to cash
 flow for Plains All American Pipeline, L.P. in 2001 and subsequent years.
 Approximately $26 million of the purchase price will be paid in cash at
 closing and the balance will be paid for using Plains All American's common
 units, subject to certain performance standards.
     The cash portion of the acquisition will be provided through borrowings on
 the Partnership's bank credit facility.  In connection with the Murphy
 acquisition, Plains All American has arranged with its lenders to increase the
 Partnership's bank credit facility to $830 million.  Consistent with its
 stated policy of maintaining a strong capital structure by funding
 acquisitions with a balance of debt and equity, the Partnership intends to
 refinance a portion of its bank facility with proceeds from future bond and
 equity financings.
     TD Securities Inc. acted as exclusive financial advisor to Plains All
 American Pipeline, L.P. with regards to this transaction.
     Except for the historical information contained herein, the matters
 discussed in this news release are forward-looking statements that involve
 certain risks and uncertainties.  These risks and uncertainties include, among
 other things, receipt of governmental approvals and consents from third
 parties, demand for various grades of crude oil and resulting changes in
 pricing conditions, successful third party drilling efforts and completion of
 announced oil-sands projects, availability of third party production volumes
 for transportation and marketing, regulatory changes, the availability of
 acquisition opportunities on terms favorable to the Partnership, fluctuations
 in the capital markets and the availability to Plains All American of credit
 on satisfactory terms, successful integration and future performance of the
 assets to be acquired, and other factors and uncertainties inherent in the
 marketing, transportation, terminalling, gathering and storage of crude oil
 discussed in the Partnership's filings with the Securities and Exchange
 Commission.
     Plains All American Pipeline, L.P. is engaged in interstate and intrastate
 crude oil transportation, terminalling and storage, as well as crude oil
 gathering and marketing activities, primarily in California, Texas, Oklahoma,
 Louisiana and the Gulf of Mexico.  Plains All American Inc., a wholly owned
 subsidiary of Plains Resources Inc., holds an effective 54% interest in the
 Partnership and serves as its General Partner.  The Partnership's common units
 are traded on the New York Stock Exchange under the symbol "PAA".  Plains
 Resources Inc.'s common shares are traded on the American Stock Exchange under
 the symbol "PLX".  The Partnership is headquartered in Houston, Texas.
 
 

SOURCE Plains All American Pipeline, L.P.
    HOUSTON and CALGARY, Alberta, April 11 /PRNewswire/ -- Plains All American
 Pipeline, L.P. (NYSE:   PAA) has agreed to purchase CANPET Energy Group Inc., a
 Calgary-based crude oil and LPG marketing company for approximately
 US$42 million.  The transaction is subject to certain regulatory approvals and
 other customary closing conditions and is expected to close in approximately
 30 to 45 days.
     "The acquisition of CANPET will complement the pending acquisition of
 Murphy Oil Company Ltd's Canadian crude oil pipeline, gathering, storage and
 terminalling assets announced last month," commented Harry Pefanis, President
 and Chief Operating Officer of Plains All American.  "When fully integrated,
 the assets and activities from these two transactions will provide an
 attractive, synergistic platform on which to build and expand our presence in
 Canada and represents a meaningful step towards our goal of establishing a
 presence in Canada that is very similar to our presence in the U.S."
     CANPET currently gathers approximately 75,000 barrels per day of crude oil
 and markets approximately 26,000 barrels per day of natural gas liquids.
 Tangible assets include a crude oil handling facility, tankage of
 approximately 130,000 barrels and working capital of approximately
 $8.5 million.  The existing management team and staff of CANPET, led by Dave
 Duckett, will join Plains All American with the mandate to expand the
 Partnership's market share in Canada.
     "Based on historical performance and reasonable market conditions, we
 anticipate CANPET will contribute approximately $7.5 million to annual
 earnings before interest, taxes, depreciation and amortization ("EBITDA"),"
 added Greg L. Armstrong, Chairman and Chief Executive Officer of Plains All
 American.  "As we combine CANPET's operations with the assets and activities
 from the Murphy acquisition over the next 12 months, we expect to phase in
 cost savings and revenue synergies that should generate an additional
 $1.5 million to $2.0 million of annual EBITDA."
     Armstrong noted that the acquisition is expected to be accretive to cash
 flow for Plains All American Pipeline, L.P. in 2001 and subsequent years.
 Approximately $26 million of the purchase price will be paid in cash at
 closing and the balance will be paid for using Plains All American's common
 units, subject to certain performance standards.
     The cash portion of the acquisition will be provided through borrowings on
 the Partnership's bank credit facility.  In connection with the Murphy
 acquisition, Plains All American has arranged with its lenders to increase the
 Partnership's bank credit facility to $830 million.  Consistent with its
 stated policy of maintaining a strong capital structure by funding
 acquisitions with a balance of debt and equity, the Partnership intends to
 refinance a portion of its bank facility with proceeds from future bond and
 equity financings.
     TD Securities Inc. acted as exclusive financial advisor to Plains All
 American Pipeline, L.P. with regards to this transaction.
     Except for the historical information contained herein, the matters
 discussed in this news release are forward-looking statements that involve
 certain risks and uncertainties.  These risks and uncertainties include, among
 other things, receipt of governmental approvals and consents from third
 parties, demand for various grades of crude oil and resulting changes in
 pricing conditions, successful third party drilling efforts and completion of
 announced oil-sands projects, availability of third party production volumes
 for transportation and marketing, regulatory changes, the availability of
 acquisition opportunities on terms favorable to the Partnership, fluctuations
 in the capital markets and the availability to Plains All American of credit
 on satisfactory terms, successful integration and future performance of the
 assets to be acquired, and other factors and uncertainties inherent in the
 marketing, transportation, terminalling, gathering and storage of crude oil
 discussed in the Partnership's filings with the Securities and Exchange
 Commission.
     Plains All American Pipeline, L.P. is engaged in interstate and intrastate
 crude oil transportation, terminalling and storage, as well as crude oil
 gathering and marketing activities, primarily in California, Texas, Oklahoma,
 Louisiana and the Gulf of Mexico.  Plains All American Inc., a wholly owned
 subsidiary of Plains Resources Inc., holds an effective 54% interest in the
 Partnership and serves as its General Partner.  The Partnership's common units
 are traded on the New York Stock Exchange under the symbol "PAA".  Plains
 Resources Inc.'s common shares are traded on the American Stock Exchange under
 the symbol "PLX".  The Partnership is headquartered in Houston, Texas.
 
 SOURCE  Plains All American Pipeline, L.P.