Cambridge Energy Corporation Closes Acquisition of West Texas Properties.Business Editors LAFAYETTE, La.--(BUSINESS WIRE)--March 25, 2002 Cambridge Energy Corporation (OTCBB OTCBB See OTC Bulletin Board (OTCBB). :CNGG), an oil & gas exploration and production company with producing properties in Louisiana Louisiana (ləwē'zēăn`ə, l  ē'–), state in the S central United States. It is bounded by Mississippi, with the Mississippi R. , today announced it has closed on the acquisition of oil and gas properties in Western Texas. Under the terms of the acquisition, Cambridge purchased the assets from Southwin Financial, Ltd. for $7,178,523 in Cambridge Class AA Preferred shares Preferred shares Preferred shares give investors a fixed dividend from the company's earnings and entitle them to be paid before common shareholders. See: Preferred stock. . These preferred shares are convertible into common stock of Cambridge at a conversion rate of $3.00 per share. "The closing of this acquisition opens the way for us to proceed with our development plans in West Texas," Perry West, Chairman and CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. of Cambridge Energy stated. The acquisition is the first transaction in an ongoing partnership with a well-established Texas oil and gas company, which will precipitate precipitate /pre·cip·i·tate/ (-sip´i-tat) 1. to cause settling in solid particles of substance in solution. 2. a deposit of solid particles settled out of a solution. 3. occurring with undue rapidity. further proven reserve acquisition opportunities. This property represents a 50-well drilling program for Cambridge Energy Corporation on the proven Caballos structure. Discoveries and field developments by other companies in the area include Exxon, Tennaco, Shell, Unocal, Fina and Texas Pacific Oil Company. Michael Childers, of Southwin Financial stated, "We are pleased to put this closing behind us and look forward to a productive future with Cambridge." As previously announced, Cambridge entered into a definitive agreement for the acquisition of oil and gas properties in Western Texas with significant proven, probable, and exploratory reserves. The total value of proven reserves of this first part of the acquisition is $40,830,402. This press release includes forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. that 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 Acts 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. While these statements are made to convey to the public the Company's progress, business opportunities, and growth prospects, readers are cautioned that such forward-looking statements represent management's opinion. Whereas management believes such representations to be true and accurate based on information and data available to the Company at this time, actual results may differ materially from those described. The Company's operations and business prospects are always subject to risk and uncertainties. Important factors that may cause actual results to differ are set forth in the Company's periodic filings with the U.S. Securities and Exchange Commission. |
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