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BEARD OIL COMPANY SHAREHOLDERS APPROVE TRANSACTIONS WITH SENIOR LENDERS AND PLAN OF REORGANIZATION

 OKLAHOMA CITY, Oct. 22 /PRNewswire/ -- Beard Oil Company (AMEX: BOC) announced that its shareholders, at the special meeting held today, approved the asset purchase agreement and adopted the reorganization agreement as presented to the shareholders in the proxy statement and prospectus for the meeting.
 Herb Mee Jr., president, stated: "Under the terms of the asset purchase agreement, Beard Oil will transfer substantially all of its oil and gas assets to Sensor Oil & Gas, Inc. ("Sensor"), a newly-formed entity owned by the Senior Lenders, in consideration for Sensor assuming and becoming liable for the repayment of a portion of the indebtedness under Beard Oil's debentures held by the Senior Lenders and for Sensor causing Beard Oil to be released from the liability therefor. In a related transaction the Senior Lenders will receive (A) 25 percent of the outstanding common stock of Beard Oil, and (B) $9,125,000 of Beard Oil series A convertible voting preferred stock convertible into up to 15 percent of the outstanding Beard Oil common stock on a fully diluted basis, in exchange for discharging the amount of debenture indebtedness not allocated to the oil and gas assets. The Senior Lenders will hold, through the common and preferred, 36.25 percent of the outstanding voting power.
 "Following the sale of assets and stock as described above, and pursuant to the reorganization agreement, The Beard Company ("Beard") will become the public parent company and owner of the former assets of Beard Oil not transferred to Sensor (the "Reorganization"), and Beard Oil will become a wholly-owned subsidiary of Beard," Mee concluded. Consummation of the Reorganization and of the transactions outlined in the agreements is subject to final approval by the Senior Lenders. It is contemplated that closing of the transactions with the Senior Lenders will occur on Tuesday, Oct. 26. Upon consummation of the Reorganization the common stock of Beard will begin trading on the American Stock Exchange under the symbol BOC.
 -0- 10/22/93
 /CONTACT: Herb Mee Jr., president of Beard Oil Company, 405-842-2333, or Cheryl M. Hudak, president of Cheryl Mayfield Hudak Communications, 405-848-3520, for Beard Oil Company/
 (BOC)


CO: Beard Oil Company ST: Oklahoma IN: OIL SU:

MP -- NY042 -- 5735 10/22/93 12:34 EDT
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Publication:PR Newswire
Date:Oct 22, 1993
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