Abacan Receives US$35 Million From Future Crude Oil Sales.CALGARY, ALBERTA--(BUSINESS WIRE)--Aug. 28, 1997--Abacan (TSE See Tokyo Stock Exchange. TSE 1. See Tokyo Stock Exchange (TSE). 2. See Toronto Stock Exchange (TSE). ABC ABC in full American Broadcasting Co. Major U.S. television network. It began when the expanding national radio network NBC split into the separate Red and Blue networks in 1928. ., NASDAQ NASDAQ in full National Association of Securities Dealers Automated Quotations U.S. market for over-the-counter securities. Established in 1971 by the National Association of Securities Dealers (NASD), NASDAQ is an automated quotation system that reports on ABACF.) Abacan Resource Corporation today announced that the company has received US$35 million as prepayment for future crude oil deliveries from the company's share of crude oil in the Ima Field, located offshore Nigeria. The prepayment has been advanced by a major oil trading company and will be repaid by the company with interest from a portion of future deliveries of crude oil from the Ima Field. Repayment will commence in February 1998 and will continue thereafter until February 1999. A portion of the proceeds of the prepayment has been used to fully repay the company's existing bank indebtedness. The balance will be applied toward operations and ongoing operating expenses Operating expenses The amount paid for asset maintenance or the cost of doing business, excluding depreciation. Earnings are distributed after operating expenses are deducted. . CEILING TEST WRITE-DOWN The Company also announced that its unaudited financial statements for June 30, 1997 will reflect a Ceiling Test write-down. In accordance with generally accepted accounting principles The standard accounting rules, regulations, and procedures used by companies in maintaining their financial records. Generally accepted accounting principles (GAAP) provide companies and accountants with a consistent set of guidelines that cover both broad accounting , the company has reduced the carrying value of its producing resource properties by US$103 million for Canadian purposes and US$100 million for US purposes, charging current period operations. The write-down is due to a reduction in reserve figures attributable to the Ima Field which was previously announced on July 7, 1997. CONTACT: Abacan Resource Corporation Jim Harvie, 403/262-1220 or 011-234-1-587-8208 |
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