Affiliated Resources Corporation Announces New Acquisition.Business Editors HOUSTON--(BUSINESS WIRE)--Feb. 2, 2000 Affiliated Resources Corporation (OTCBB OTCBB See OTC Bulletin Board (OTCBB). :ARCX) today announced that it has acquired an 85% interest in Seneca Energy Partners L.P., a Texas Limited Partnership, engaged in the oil and gas business, in a stock for partnership unit transaction. The transaction also provides for a management agreement with Seneca's General Partner, Lonestar Investment Management, L.L.C., a Texas Limited Liability Company. Under terms of the agreement dated December 27, 1999, Lonestar exchanged 85% of Seneca's limited partnership units for 800,000 shares of Affiliated common stock and an irrevocable option to purchase 425,000 shares of Affiliated common stock for a price of $.10 per share. Lonestar, which remains General Partner and retains its 1% interest, will continue to manage Seneca. The venture will reimburse Lonestar for out-of-pocket expenses out-of-pocket expenses n. moneys paid directly for necessary items by a contractor, trustee, executor, administrator or any person responsible to cover expenses not detailed by agreement. which includes an accrued expense Accrued Expense An accounting expense recognized in the books before it is paid for. It is a liability, usually current. These expenses are typically periodic and documented upon a company's balance sheet due to the high probability of collection. of $45,000. The remaining 14% of Seneca will be retained by current limited partners, Jay R. Beatty and Michael R. Bradle, Affiliated's new president and chief operating officer Chief Operating Officer (COO) The officer of a firm responsible for day-to-day management, usually the president or an executive vice-president. . Currently, Seneca has an interest in 16 oil and gas wells in West Virginia West Virginia, E central state of the United States. It is bordered by Pennsylvania and Maryland (N), Virginia (E and S), and Kentucky and, across the Ohio R., Ohio (W). Facts and Figures Area, 24,181 sq mi (62,629 sq km). Pop. with a reserve report value of approximately $182,000. According to Peter C. Vanucci, chairman and CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. of Affiliated, &uot;This acquisition is the beginning of a new business entity designed to increase shareholder value and improve cash flow. To this end, Seneca's management has identified $3,000,000 of additional working interests which the company intends to fund with the proceeds of a private placement of preferred stock Stock shares that have preferential rights to dividends or to amounts distributable on liquidation, or to both, ahead of common shareholders. Preferred stock is given preference over common stock. Holders of preferred stock receive dividends at a fixed annual rate. it intends to conduct at a later date. I am delighted to be able to add an entity that will not only produce positive benefits to our shareholders but is also consistent with our existing Chemway business which blends and packages petroleum products.&uot; Affiliated Resources Corporation is engaged, through its Chemway division, in the blending, packaging and distribution of automotive aftermarket fluids and is currently pursuing related acquisitions. Statements included in this press release which are not historical in nature, are intended to be, and are hereby identified as &uot;forward-looking statements&uot; for purposes of the safe harbor Safe Harbor 1. A legal provision to reduce or eliminate liability as long as good faith is demonstrated. 2. A form of shark repellent implemented by a target company acquiring a business that is so poorly regulated that the target itself is less attractive. provided by Section 21E of the Securities Exchange Act of 1934, as amended by Public Law 104-67 and provisions of the Private Securities Litigation Reform Act The Private Securities Litigation Reform Act of 1995 (PSLRA) implemented several significant substantive changes affecting certain cases brought under the federal securities laws, including changes related to pleading, discovery, liability, class representation and awards fees and of 1995. Forward-looking statements may be identified by words including &uot;anticipate,&uot; &uot;believe,&uot; &uot;intends,&uot; &uot;estimates,&uot; &uot;expects,&uot; and similar expressions. Affiliated Resources Corporation cannot guarantee that agreements or contracts will be fulfilled by its customers or distributors. The Company cautions readers that forward-looking statements, including, without limitation, those relating to the Company's future business prospects are subject to certain risks and uncertainties that could cause actual results to differ materially from those indicated in the forward-looking statements. |
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