CAYC Enters Into a $17.5 Million Funding Transaction.LAS VEGAS--(BUSINESS WIRE)--July 1, 1998--CAYE CHAPEL, INC inc - /ink/ increment, i.e. increase by one. Especially used by assembly programmers, as many assembly languages have an "inc" mnemonic. Antonym: dec. . (OTC OTC See: Over-the-counter. OTC See over-the-counter market (OTC). BB:CAYC CAYC Canadian Association for Young Children ) announced today that it has signed a letter of intent with privately owned Honduras Petrochemical Oil Corp.(HPC (Handheld PC) A palmtop computer that weighs less than one pound and runs specialized versions of popular applications. Microsoft coined the term for its Windows CE operating system, which is an abbreviated version of Windows. See Pocket PC. ) to sell 51% of its outstanding common shares from its largest shareholder, privately owned Churchill Resources, Inc. According to the terms of the agreement between CAYC and HPC, HPC will invest $ 17.5 million over a period of one year, in $5 million increments. Additionally, Churchill Resources, Inc., the largest shareholder of CAYC will enter into a long-term management and operation contract. The investment agreement will enable CAYC to acquire an additional 30 new portable swabbing units, drill, test, complete, and equip over 70 new wells as well as provide the funds for its day-to-day operations. With the infusion of $17.5 million over a period of 12 months, it is estimated that CAYC will be producing in excess of 3,000 barrels of oil per day. CAYC acquired the assets of Great Plains, Inc.(GPI (Graphical Programming Interface) A graphics language in OS/2 Presentation Manager. It is a derivative of the GDDM mainframe interface and includes Bezier curves. ), which include 1,800 oil and gas wells with approximately 21 million barrels of proven oil reserves on 15 separate fields in central Texas. CAYC also acquired from GPI 6 portable swabbing units, rolling stock rolling stock Any of various readily movable transportation equipment such as automobiles, locomotives, railroad cars, and trucks. Rolling stock generally makes good collateral for loans because the equipment is standardized and easily transportable among and all of its field and office equipment outright. CAYC also recently acquired an additional 160 producing wells in Lytle and Summerset, Texas, with an estimated 3 million barrels of proven oil reserves. CAYC also has the right to convert its investment in Oilex, Inc. (OTC BB: OLEX) into common shares and has been discussing the possible consolidation of the two entities. Additionally, CAYC has two other acquisitions pending. CAYC management is very pleased with the new agreement between CAYC and HPC. CAYC management believes that the relationship between the two entities is long-term and should be beneficial to both parties as well as the shareholders of CAYC. This news release includes forward-looking statements that involve risks and uncertainties. The forward-looking statements in this release are made pursuant to 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. 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. Actual results may differ materially due to a variety of factors, including without limitation the company's ability to produce and market products and/or services and other risks detailed from time to time in the company's reports filed with the Securities and Exchange Commission.
CONTACT: C.JONES & CO.
Allen Jones
(303) 470-8783
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