Castle Energy Corporation Rejects Bids for Oil and Gas Properties and Announces Quarterly Dividend.Business Editors RADNOR Radnor may refer to:
Castle Energy Corporation(a) (NASDAQ NASDAQ in full National Association of Securities Dealers Automated Quotations U.S. market for over-the-counter securities. Established in 1971 by the National Association of Securities Dealers (NASD), NASDAQ is an automated quotation system that reports on :CECX)(the "Company") announced that its Board of Directors has decided not to sell its oil and gas properties. In July of this year the Company hired an outside advisor to market its domestic oil and gas properties. According to according to prep. 1. As stated or indicated by; on the authority of: according to historians. 2. In keeping with: according to instructions. 3. Mr. Joseph L. Castle II, Chief Executive Officer and Chairman of the Board, the highest prices offered for the Company's properties were significantly below the Company's expectations -- especially given current high crude oil prices and record high natural gas prices. Mr. Castle attributed the low prices offered to several factors, including lenders' reluctance to provide financing for would-be purchasers and general uncertainty concerning the long term sustainability of current high prices. Mr. Castle indicated that the Company intends to pursue acquisitions of oil and gas properties for its own account given the apparent low prices being offered by buyers in the current market. He also indicated that the Company's Board of Directors may consider authorizing further share repurchases Share Repurchase A program by which a company buys back its own shares from the marketplace, reducing the number of outstanding shares. This is usually an indication that the company's management thinks the shares are undervalued. of the Company's stock. Finally, he said the Company would not rule out selling its properties if a much improved bid or bids were received. The Company's Board of Directors also declared a quarterly dividend of $.05 per share payable on January 12, 2001 to holders of record on January 8, 2001. The Company currently owns oil and gas interests in approximately 585 oil and gas wells located in fourteen states in the United States United States, officially United States of America, republic (2005 est. pop. 295,734,000), 3,539,227 sq mi (9,166,598 sq km), North America. The United States is the world's third largest country in population and the fourth largest country in area. . Approximately half of the wells are operated by the Company. The Company also has fifty percent (50%) interest in three oil and gas concessions in Romania. 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. in this announcement 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. Investors are cautioned that all forward-looking statements involve risks and uncertainty, including without limitation, the costs of exploring and developing new oil and natural gas reserves, the price for which such reserves can be sold, environmental concerns effecting the drilling of oil and natural gas wells, as well as general market conditions, competition and pricing. Please refer to the Company's Securities and Exchange Commission filings for additional information. (a) Castle Energy Corporation is not affiliated with Castle Oil Corporation |
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