Abacan Resource Corp. announces results at NGO No. 5 well.CALGARY, Alberta--(BUSINESS WIRE)--MARCH 22, 1995--Abacan Resource Corp. (Alberta Stock Exchange Alberta Stock Exchange See Canadian Venture Exchange (CDNX). :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. ) ("The Corporation") is pleased to announce the results of its NGO NGO abbr. nongovernmental organization Noun 1. NGO - an organization that is not part of the local or state or federal government nongovernmental organization No. 5 well, offshore Nigeria, West Africa West Africa A region of western Africa between the Sahara Desert and the Gulf of Guinea. It was largely controlled by colonial powers until the 20th century. West African adj. & n. on Concession Block OPL OPL Open Publication License OPL Olympus Product Line (Sun) OPL outer plexiform layer OPL Organiser Programming Language (PSION) OPL On-Premise Laundry OPL Optical Path Length OPL Open Public License 469 and also the terms of two private placement financings for approximate proceeds of $20,000,000. NGO No. 5 TEST RESULTS The NGO No. 5 well flow tested 19,000 cumulative measured barrels per day Barrels per day (abbreviated BPD, bbl/d, bpd, bd or b/d) is a measurement used to describe the amount of crude oil (measured in barrels) produced or consumed by an entity in one day. of Oil and Condensate condensate, matter in the form of a gas of atoms, molecules, or elementary particles that have been so chilled that their motion is virtually halted and as a consequence they lose their separate identities and merge into a single entity. , with associated gas from four separate send intervals on choke sizes ranging from 48/64 to 64/64. The NGO No. 5 well was Abacan's third well to be drilled on the NGO structure on OPL 469. The reservoirs encountered proved to be correlative Having a reciprocal relationship in that the existence of one relationship normally implies the existence of the other. Mother and child, and duty and claim, are correlative terms. and continuous over the NGO structure. The NGO No. 5 well was directionally drilled to a true vertical depth of 11.450 feet, west of the NGO No. 3 discovery well drilled in June 1994. A new hydrocarbon zone was tested in the NGO No. 5 well with initial test results being very positive. After detailed log analysis, this zone has been identified in the NGO No. 3 well. Testing operations will commence on this zone in the NGO No. 3 well this week, which could add significant reserves to the NGO field. The development well, NGO No. 6, will commence drilling after testing operations are completed on the NGO No. 3 well. The NGO No. 6 well will be directionally drilled to the east of the NGO No. 3 well on Concession OPL 237, which is estimated to contain more than one half of the reserves on the NGO structure. The NGO structure straddles both OPL's 469 and 237. Abacan is extremely pleased with the results from the NGO No. 5 well. Various production facilities have been researched and operations have been initiated to bring the field on production in the shortest possible time frame. PRIVATE PLACEMENT FINANCINGS The Corporation also announces a financing of approximately $20,000,000 by the issuance of Special Warrants and Redeemable Convertible Debentures/Royalties. Midland Walwyn Capital Inc. is acting as the lead agent in respect of these financings. The breakdown of the financings is as follows: 1. Two Convertible Redeemable Debentures/Royalty Agreements (the "Debentures") for total proceeds of $5,417,000. This private placement has now closed and the proceeds have been used by the Corporation to satisfy costs incurred in respect of the drilling on the OPL 469 Concession Block. 2. The balance of the financing by the issuance of Special Warrants at a price of $2.50 per Special Warrant. Each Special Warrant entitles the holder to acquire one common share of the Corporation without additional consideration. The closing of the Special Warrant Private Placement is expected to occur during the week of March 27, 1995. The proceeds of the Special Warrant Private Placement are intended to be used by the Corporation to fund its ongoing exploration and development program upon the OPL 469 and OPL 237 Concession Blocks located in Nigeria, Africa. The Debentures bear interest at a rate of 10 percent per annum Per annum Yearly. and are convertible into common shares of the Corporation by the holders on January 1, 1996 or January 1, 1997 at a conversion price of $3.00 and $3.50 per common share respectively. After the repayment of the principal amount under the Debentures, the holders will receive a minor sliding scale slid·ing scale n. A scale in which indicated prices, taxes, or wages vary in accordance with another factor, as wages with the cost-of-living index or medical charges with a patient's income. royalty to be paid out of production from the OPL 469 and OPL 237 Concession Blocks. The maximum aggregate royalty payment payable by the Corporation is $0.022 ($US) per barrel. The Corporation may redeem both the principal amount of the Debenture and the royalty interest royalty interest The proportional ownership interest by the owner of oil and gas rights in income produced by the asset. See also overriding royalty interest. at any time upon payment of a penalty. The Corporation also announces the appointment of Gordon Singer, C.A. as its Chief Financial Officer. Mr. Singer brings with him 15 years of international oil and gas experience, most recently as Vice President of Finance with a major Canadian international public oil and gas corporation. THE ALBERTA STOCK EXCHANGE NEITHER APPROVES NOR DISAPPROVES OF THE INFORMATION CONTAINED HEREIN. CONTACT: Wade G. Cherwayko or Ms. Lon Boshouwers, (403) 262-1220 |
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