Ascentex Energy, Inc. Corporate Update.CALGARY, Alberta--(BUSINESS WIRE)--Nov. 7, 1996--Ascentex (TSE See Tokyo Stock Exchange. TSE 1. See Tokyo Stock Exchange (TSE). 2. See Toronto Stock Exchange (TSE). : AEN AEN Address Enable AEN America's Emergency Network AEN Australian Energy News (magazine) AEN Agenzia per l'Energia Nucleare (Italian: Nuclear Energy Agency; OCSE) AEN Administrative Exception Note .) Ascentex Energy, Inc. today announced that it has entered into an agreement in principle to merge with a private oil and gas company which will triple Ascentex's current production. The private company has assets of $23 million of proved reserves proved reserves The quantity of minerals expected to be recoverable under current economic and operating conditions. The amount of proved reserves is important in valuing the stock of a company with significant holdings in natural resources. and $2 million of probable reserves (reduced by 50 percent for risk) based on escalating prices and a 15 percent discount rate. The private company's reserves consist of 32 bcf of proved and probable reserves of natural gas and 500,000 barrels of oil and natural gas liquids. Current production consists of approximately 13 million cubic feet of gas and 175 barrels of oil and liquids per day, with net operating income Operating Income The profit realized from a business' own operations. Notes: This would not include income from things such as investments in other firms. Also referred to as operating profit or recurring profit. projected for 1996 of $6 million. In addition, the company has approximately 19,000 net acres of undeveloped land contiguous to existing production, approximately 3,000 miles of seismic data in western Canada
Western Canada, commonly referred to as the West and significant excess tax pools. The transaction is subject to regulatory approval, negotiation of a formal agreement and the completion of due diligence Research; analysis; your homework. This term has caught on in all industries, because it sounds so "wired." Who would want to do analysis or research when they can do due diligence. See wired. reviews. The transaction is also subject to shareholder approval, which is expected to be sought in January, 1997. The combined company will have oil and gas assets totaling approximately $45 million, net operating income in excess of $8 million, bank debt of $16 million and 27 million common shares outstanding. Production will consist of approximately 15 million cubic feet of gas and 700 barrels of oil per day. Ascentex Energy, Inc. today also closed its previously announced Special Warrant Flow-Through Financing through E.C.C. Energy Corporate Consultants Ltd. and Wolverton Securities Limited. 1,930,000 Special Warrants were issued at a price of $0.52 per share, resulting in net proceeds Net Proceeds The amount received after all costs are deducted from the sale of a piece of property or security. Notes: In the case of an investor selling a security, net proceeds represent the proceeds from the sale minus any trading costs (i.e. commissions). to the Corporation of $943,384, one-half of which was received at closing and the remaining of which is payable on Dec. 31, 1996. The Corporation will use the net proceeds to supplement Ascentex's remaining 1996 and new 1997 exploration and development programs in southern Alberta, southeastern Saskatchewan and Manitoba. The Corporation has recently expanded its exploration staff in order to accelerate the level of exploration activity in these areas. CONTACT: Ascentex Energy, Inc. Eric C. Gronberg, 403/265-3320 403/262-5184 (FAX) |
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