CCO TO SELL COASTAL PETE SHARES
CCO TO SELL COASTAL PETE SHARES TALLAHASSEE, Fla., Dec. 4 /PRNewswire/ -- Coastal Caribbean Oils &
Minerals, Ltd. said it has agreed to sell up to 10 percent of the outstanding shares of Coastal Petroleum Company (CPC), a privately held concern with extensive petroleum and mineral leaseholds in Florida.
Coastal Caribbean, a Bermuda corporation, is listed on the Boston Stock Exchange (CCO-B;CCO-BN). It currently has a 90 percent equity interest in CPC, with the remaining 10 percent held by an individual shareholder. The company said it has agreed to sell six to its CPC shares, at $50,000 per share, to a private investor who also has the option to acquire four additional six-share increments every six months beginning July 15, 1992, at the same price. That option, if fully exercised, would give the investor a total of 30 shares of CPC as of Jan. 15, 1994. A Coastal Caribbean spokesman said at least half of the proceeds of the sale will be used to fund CPC's Florida exploration activities, adding that CPC intends to apply for a geophysical exploration permit on its leases in the near future. According to the spokesman, the Coastal Caribbean agreement stipulates that the investor is entitled to exchange each CPC share for 100,000 Coastal Caribbean shares through Dec. 31, 1995, subject to adjustment for dilution and other factors. If fully exercised, that entitlement would leave him with about 8 percent of Coastal Caribbean's outstanding shares. The spokesman said the investor also will have the right to exchange his CPC shares for an overriding royalty interest in CPC's holdings, which encompass approximately 3.7 million acres of submerged and tidal lands under certain harbors, rivers, and inland lakes as well as offshore lands along the Gulf Coast. Were the investor to acquire his full 10 percent entitlement in CPC and then exchange for the royalty, his overriding royalty interest in CPC working-interest acreage would be 1.28 percent, the spokesman said. The spokesman further noted that CPC currently is enmeshed in litigation with its lessor, the trustees of the Internal Improvement Trust Fund of the state of Florida, which has prohibited drilling in state-owned waters. -0- 12/4/91 /CONTACT: Arthur B. O'Donnell, 203-525-1202, for Coastal Caribbean Oils & Minerals/ CO: Coastal Caribbean Oils & Minerals, Ltd.; Coastal Petroleum ST: Florida IN: OIL SU: TNM PS -- NY004 -- 9015 12/04/91 08:00 EST
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|Date:||Dec 4, 1991|
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