Western Oil Sands Shareholder InformationOn October 18, 2007, Marathon completed its acquisition of Western Oil Sands, Inc. Below is a series of frequently asked questions and answers about the mechanics of the transaction for the benefit of former shareholders of Western. Additional general information about the transaction may be found in the information circular (PDF 5.9MB) distributed by Western in advance of the shareholder meeting at which the transaction was approved.
1. What did Western shareholders receive in the transaction?
Under the Plan, the maximum amount of cash to be paid to Western shareholders was Cdn$3.8 billion. However, Western shareholders elected to receive a cash amount greater than the Cdn$3.8 billion available. As a result, the cash paid was prorated, and shareholders received approximately 86 percent of the cash amount that they elected. Shareholders who did not make an affirmative election received approximately 55 percent cash and 45 percent Marathon shares (after proration). As part of the Plan, Western shareholders also received for each Class A share held, one common share and one-tenth of a common share purchase warrant of WesternZagros Resources Ltd. ("WesternZagros"), a new international exploration company that is carrying on Western's former business in the Kurdistan Region of Iraq. Each whole warrant of WesternZagros may be exercised to purchase one common share of WesternZagros until January 18, 2008 at an exercise price of Cdn$2.50. For questions about these securities, please contact WesternZagros.
2. How can I get individual information about the specific consideration I received for my Western shares in the transaction?
3. What are the tax consequences of the transaction for former Western shareholders? All former Western shareholders are encouraged to consult their personal tax advisors regarding individual tax consequences.
4. I recently received a tax notice regarding Section 338. What does it mean?
5. I received exchangeable shares in the transaction. How can I exchange them for common shares of Marathon Oil Corporation? For information about exchanging these shares for common shares, you may contact Valiant Trust Company at the following numbers:
6. Will I receive dividends on my exchangeable shares? |
|