UPDATE 1-Unitech Energy drops plan to buy Cancen Group

* Says could not come to terms with a definitive agreement

* Due diligence did not support proposed consideration

* Shares drop 25 percent

TORONTO, Nov 2 (BestGrowthStock) – Canadian oil and gas explorer
Unitech Energy Resource Inc (URX.V: ) said on Tuesday it had
dropped its plan to buy Cancen Group as the two companies could
not come to terms, sending its shares down 25 percent.

Unitech said in a statement the due diligence it had
performed on Cancen did not support the C$50 million ($49.5
million) it had offered to pay for the privately held Alberta
company, which treats and reprocesses oil waste and polluted
water.

Unitech Energy, whose key oil and gas properties are in
northeast British Columbia, had signed a letter of intent on
May 4 to buy Cancen Group’s assets, including an oil cleaning
and treatment site in Edmonton, Alberta.

Unitech and Cancen jointly own an oil waste and
water-treatment facility in Fort Nelson, British Columbia.

Unitech shares were 2.5 Canadian cents lower at 3.5
Canadian cents on Tuesday afternoon on the Canadian Venture
Exchange.

($1=$1.01 Canadian)
(Reporting by Bhaswati Mukhopadhyay in Toronto; Editing by
Peter Galloway)

UPDATE 1-Unitech Energy drops plan to buy Cancen Group