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SECURITIES AND EXCHANGE COMMISSION
Washington, D. C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of
the Securities Exchange Act of 1934
Date of Report: May 21, 1997
Date of earliest event reported: May 21, 1997
ASHLAND INC.
(Exact name of registrant as specified in its charter)
Kentucky
(State or other jurisdiction of incorporation)
1-2918 61--0122250
(Commission File Number) (I.R.S. Employer
Identification No.)
1000 Ashland Drive, Russell, Kentucky 41169
(Address of principal executive offices) (Zip Code)
P.O. Box 391, Ashland, Kentucky 41114
(Mailing Address) (Zip Code)
Registrant's telephone number, including area code (606) 329-3333
Item 5. Other Events
On May 21, 1997, Ashland Inc. and the Norwegian energy company,
Statoil, announced the signing of a definitive purchase and sale agreement
for the outstanding stock of Blazer Energy Corp. (Blazer), a wholly owned
subsidiary of Ashland Inc. Blazer is engaged in the exploration for and the
development, production, acquisition and marketing of natural gas and oil.
Statoil's acquisition of Blazer will be made through its U.S. energy
management subsidiary, The Eastern Group, Inc.
The cash transaction, which includes substantially all of Ashland's
domestic oil and gas properties, but excludes international operations, is
valued at $566 million and is subject to approval by Statoil's Supervisory
Board and federal regulatory authorities. Closing of the transaction is
anticipated by July 1, 1997.
The foregoing summary of the attached press releases are qualified in
their entirety by the complete text of such documents, copies of which are
attached hereto.
Item 7. Financial Statements and Exhibits
(c)Exhibits
99 (a) Press Release
99 (b) Press Release
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of
1934, the registrant has duly caused this report to be signed on its behalf
by the undersigned thereunto duly authorized.
ASHLAND INC.
-----------------------------------
(Registrant)
Date: May 21, 1997 /s/ James G. Stephenson
-----------------------------------
Name: James G. Stephenson
Title: Vice President - Law
Exhibit Index
Exhibit No.
99(a) Press Release of Ashland Inc.
dated May 21, 1997
99(b) Press Release of Ashland Inc. dated
May 21, 1997
FOR FURTHER INFORMATION:
Stan Lampe (Ashland)
(606) 329-4061 (U.S.)
Kai Nielsen (Statoil)
011 47 52 4972 (Norway)
Glenn Schickler (Eastern)
(703) 317-2336 (U.S.)
FOR IMMEDIATE RELEASE
May 21, 1997
The Eastern Group to purchase
Blazer Energy domestic E & P holdings
Ashland, Ky. -- Ashland Inc. (NYSE:ASH) and the Norwegian energy
company, Statoil, announced today the signing of a definitive purchase and
sale agreement for the outstanding stock of Blazer Energy Corp. (Blazer), a
wholly owned subsidiary of Ashland Inc. Blazer is engaged in the
exploration for and the development, production, acquisition and marketing
of natural gas and oil. Statoil's acquisition of Blazer will be made
through its U.S. energy management subsidiary, The Eastern Group, Inc.
(Eastern).
The cash transaction, which includes substantially all of Ashland's
domestic oil and gas properties, but excludes international operations, is
valued at $566 million and is subject to approval by Statoil's Supervisory
Board and federal regulatory authorities. Closing of the transaction is
anticipated by July 1, 1997.
Harald Norvik, president and chief executive of Statoil, said "the
acquisition of Blazer reflects our strong commitment to the North American
energy market. Blazer's Appalachian Basin properties will be retained by
Eastern, while its Gulf of Mexico properties will be operated by Statoil
Exploration (U.S.) Inc. (SEUS), another of Statoil's three U.S. operating
companies. This acquisition will substantially enhance Eastern's ability to
serve its end user customer base with strategically located reserves, while
the Gulf properties will provide SEUS a valuable stepping stone to its
ambitions in deeper waters off the Gulf Coast."
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David A. Dresner, president and chief executive of Alexandria,
Va.-based Eastern, said, "the combination of Blazer with Eastern will
create the Appalachian Basin's largest natural gas producer." Mr. Dresner
and Egil Endresen, president of Houston-based SEUS, indicated they hope to
retain a large number of Blazer's employees.
Statoil, one of the world's largest net sellers of crude oil and a
substantial supplier of natural gas to continental Europe, is also engaged
in the refining and marketing of petroleum products as well as the
development of power generating facilities and other downstream businesses.
Through its Stamford, Conn.-based subsidiary, Statoil North America Inc.,
Statoil supplies approximately 500,000 barrels per day of crude oil and
refined products to North America.
Ashland Inc. is a large energy and chemical company engaged in
petroleum refining and marketing; coal; and highway construction.
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FOR FURTHER INFORMATION:
Chuck Rice
(606) 329-3895
FOR IMMEDIATE RELEASE
May 21, 1997
Ashland chairman remarks on sale
of Blazer Energy Corp. domestic assets
Ashland, Ky. -- Ashland Inc. (NYSE:ASH) announced today the sale of
Blazer Energy Corporation's domestic exploration and production assets to
the Norwegian energy company Statoil through its U.S. energy management
subsidiary, The Eastern Group, Inc.
"We are extremely pleased with this transaction," said Paul W.
Chellgren, chairman and chief executive officer, Ashland Inc. "This cash
sale has potential to build shareholder value in several ways including
debt reduction and accelerated investment in our growth areas. We are also
pleased that the Statoil affiliates have indicated that they hope to retain
a large number of Blazer Energy employees.
"While we have not formulated specific plans for the proceeds from the
sale, we intend to continue to follow our previously announced
profitability improvement plan and redirect freed capital to growth
businesses, including Ashland Chemical Company, the APAC highway
construction group and Valvoline."
Ashland Inc. is a large energy and chemical company engaged in
petroleum refining and marketing; coal; highway construction; and oil and
gas exploration and production. Ashland Chemical is the largest distributor
of chemicals and plastics in North America and a leading supplier of
specialty chemicals worldwide. Ashland's major consumer brands include
Valvoline -R- motor oils, Zerex -R- antifreeze and Pyroil -R- automotive
chemicals. As one of the largest independent refiners in the nation,
Ashland is also a leading regional gasoline marketer, with products
marketed under the SuperAmerica -R- and Ashland-R- brand names.
Ashland's internet address is http://www.ashland.com
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