Castle Energy Corp. announces refinancing of Metallgesellschaft loans to Powerine Refinery and status of other matters relating to Metallgesellschaft.RADNOR, Pa.--(BUSINESS WIRE)--April 17, 1995--Castle Energy Corp.(a) (NASDAQ/NNM:CECX) (the "Company") announced that its subsidiary, Powerine Oil Co. ("Powerine"), owner of 49,500 B/D Powerine Refinery in Santa Fe Springs Santa Fe Springs, city (1990 pop. 15,520), Los Angeles co., SW Calif., inc. 1957. The city lies in an oil and natural gas region and has diversified manufacturing. , Calif., has fully repaid the working capital loan facility provided by MG Trade Finance Co., a subsidiary of Metallgesellschaft Corp. ("MG"). The repayment was affected by a set of purchase/sale transactions with Wickland Oil Co. with respect to Powerine's crude oil inventory/requirements and its refined product output. The transactions with Wickland Oil are intended to allow Powerine continued operation and thereby facilitate the sale of the refinery. The Company is currently in the process of conducting active negotiations for such a sale. The Company also announced the following: -0- 1. Powerine and MG have agreed to arbitrate claims exceeding $10 million which Powerine has asserted against MG Refinery and Marketing Inc. ("MGRM MGRM Malta Gay Rights Movement (Malta) ") under the terms of the prior offtake Off´take` n. 1. Act of taking off; specif., the taking off or purchase of goods. 2. Something taken off; a deduction. 3. A channel for taking away air or water; also, the point of beginning of such a channel; a take-off. arrangement between Powerine and MGRM. 2. Indian Refinery Ltd. Partnership ("IRLP IRLP Internet Radio Linking Project IRLP Internet Repeater Linking Project (Ham Radio project to link local radio repeaters internationally via internet) "), owner of 86,600 B/D Indian Refinery in Lawrenceville, Ill. continues to take steps to take action; to move in a matter. See also: Step to reduce the outstanding balances under its separate working capital loan facility with MG Trade Finance (advances under which were due as of March 31, 1995). The Company has provided Metallgesellschaft with business plans in this regard, and expects to be able to fully repay MG within the next 30 days, assuming a reasonable level of cooperation from MG. Outstanding balances have been reduced by more than 50% during March and April, and the value of the liquid collateral assets of IRLP is substantially in excess of the remaining balances of the loans. IRLP will continue to internally finance limited refining operations with the intent to sell the operations in an orderly manner. IRLP is in the process of conducting active negotiations concerning the sale of the refinery, and is also in the process of attempting to structure certain interim arrangements. 3. The Texas Railroad Commission has approved a reduction in spacing to 80 acres at the Oak Hill field in Rusk County, Texas Rusk County is a county located in the U.S. state of Texas. Originally a part of Nacogdoches County, Rusk was established as its own county by the Congress of the Republic of Texas on January 16, 1843. In 2000, its population was 47,372. . As a result, the Company will add an estimated 67.8 bcf to its proved/undeveloped reserves with future net income of $14.7 million discounted at 10%. -0- The Company owns two refining subsidiaries, IRLP and Powerine. The Company, through various subsidiaries and affiliates, also owns a gas sales contract Sales Contract Contract between a seller and buyer for the sale of goods, services, or both. with Lone Star Lone Star (or Lonestar) may refer to:
CONTACT: Castle Energy Corp., Radnor Joseph L. Castle II, 610/995-9400 |
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