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CONVEST ENERGY ANNOUNCES PROPOSED ACQUISITION OF VANTAGE POINT ENERGY

CONVEST ENERGY ANNOUNCES PROPOSED ACQUISITION OF VANTAGE POINT ENERGY
    HOUSTON, Nov. 5 /PRNewswire/ -- Convest Energy Corporation (AMEX: COV) announced today that it has entered into a letter of intent with Vantage Point Energy, Inc. (NASDAQ: VPEI), a Tulsa, Okla.-based independent oil and gas company, for the acquisition by Convest of all of Vantage Point's issued and outstanding common stock.  Under the proposed terms of the transaction, holders of Vantage Point's common stock and warrants and options to purchase common stock would receive a total of approximately $9,235,000 in cash.  Sceptre Resources Limited of Calgary, Canada, the owner of approximately 80 percent of the outstanding common stock of Vantage Point will also receive, prior to closing, all of Vantage Point's undeveloped Niobrara leasehold acreage. The proposed transaction is expected to be structured as a merger of a wholly owned subsidiary of Convest into Vantage Point in which Vantage Point will survive the merger and Convest will become the sole holder of all Vantage Point's then outstanding common stock.  Vantage Point's Series A 5 percent convertible preferred stock will remain outstanding after the merger along with $8.5 million of bank indebtedness.  The acquisition of Vantage Point is expected to be financed through Convest's existing lines of credit with its commercial banks.
    Following negotiation and execution of a definitive merger agreement, the proposed transaction will be submitted to the board of directors and stockholders of Vantage Point and to the board of directors of Convest for their respective approvals.  Closing of the proposed merger is expected to occur in late 1991 or early 1992.
    Vantage Point's estimated proved reserves as of July 1, 1991 of approximately 3.5 million barrels of oil and 15,800 million cubic feet of gas will increase Convest's proved oil and gas reserves as of the same date by approximately 73 percent and 88 percent, respectively.
    Convest Energy Corporation is a publicly traded Texas corporation whose principal business activities include the development and operation of oil and gas properties and the acquisition and exploration for additional oil and gas reserves.  Convest Energy Corporation's common stock is traded on the American Stock Exchange under the symbol COV.  The common stock of Vantage Point Energy, Inc. is traded in the over-the-counter market under the NASDAQ symbol of VPEI.
    -0-             11/5/91
    /CONTACT:  Deborah W. Eakin of Convest Energy, 713-780-1952/
    (COV VPEI) CO:  Convest Energy Corporation; Vantage Point Energy, Inc. ST:  Texas, Oklahoma IN:  OIL SU:  TNM FC-OS -- NY063 -- 1385 11/05/91 16:05 EST
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Publication:PR Newswire
Date:Nov 5, 1991
Words:420
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