Kereco Energy's tender for convertibles delayed

New York, Feb. 26 - Kereco Energy Ltd. said the start of its tender offer to buy its C$70 million 4.75% convertible unsecured subordinated debentures due 2012 has been delayed.

Results of an independent valuation will be presented to the company's directors on March 13 and, assuming approval is obtained, documents for the offer will be mailed shortly after.

Kereco had hoped to obtain a waiver of the requirement for an independent valuation but was unable to do so. It has originally intended to mail the offer by the end of January.

Under the proposed tender, Kereco will offer to buy the convertibles at 95% of par.

The tender is intended to improve the efficiency of the company's balance sheet, which currently has both excess cash and an undrawn bank line.

Kereco is a natural gas exploration company based in Calgary, Alta.

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