Chaparral Resources Announces Changes in Financing Arrangements.HOUSTON--(BUSINESS WIRE)--March 10, 1998--Chaparral Resources Inc. (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 :CHAR) announced today that the financing agreement signed on Nov. 21, 1997 with Exeter Finance Group, pursuant to which Exeter purchased $5,000,000 Series A of preferred stock Stock shares that have preferential rights to dividends or to amounts distributable on liquidation, or to both, ahead of common shareholders. Preferred stock is given preference over common stock. Holders of preferred stock receive dividends at a fixed annual rate. , has been terminated by mutual agreement. This termination releases Exeter from further payments to Chaparral. The Company is completing a private placement through Allen & Company for 1,250,000 shares of common stock for $2,500,000. Allen & Company, an 18 percent shareholder of Chaparral, has also committed to raise additional financing for the development of the Kurakuduk Field on terms that the board of directors considers more favorable for the long-term interests of Chaparral. Chaparral is aggressively moving forward to fully develop the Phase One work over program in the Karakuduk Field. The Company has re-entered wells No. 21, No. 7 and No. 10. These wells are being reperforated by Schlumberger to bring the production levels up to their full potential. The Company is also finalizing negotiations for a drilling rig for the Phase Two 10 well drilling Well drilling is the process of drilling a hole in the ground for the extraction of a natural resource such as ground water, natural gas, or petroleum. Drilling for the exploration of the nature of the material underground (for instance in search of metallic ore) is best described program expected to commence late in the second quarter of 1998. The Company signed a contract with MunaiImpex, the marketing subsidiary of KazakhOil, the Kazakhstan National Petroleum Company, for the transportation and sale of this year's oil production into an export market. The Company also announced that Michael B. Young has joined the Company as the treasurer and controller. Mr. Young spent over six years with Arthur Andersen For the U.S. Supreme Court case commonly known as Arthur Andersen, see . Arthur Andersen LLP, based in Chicago, was once one of the "Big Five" accounting firms (the other four are PricewaterhouseCoopers, Deloitte Touche Tohmatsu, Ernst & Young and KPMG), performing LLP LLP - Lower Layer Protocol , as a tax manager in their Houston oil and gas practice, focusing primarily on independent exploration and production companies with international operations. Ms. Amanda Johnson has also been elected assistant secretary of Chaparral. Chaparral Resources Inc. is an international oil and gas exploration and production company. The Company is a participant in the development of the Karakuduk oil field in western Kazakhstan. The Company owns a 50 percent beneficial ownership interest in Karakuduk-Munai Inc. ("KKM KKM Kyou Kara Maou (fanfiction) KKM Kreiskolbenmotor (German: Planetary Rotation Motor) KKM Katholische Korporationen München KKM Koordinierungskreis Mosambik eV ") the operator of the field. The majority of the other 50% ownership is held by KazakhOil, the Kazakhstan National Petroleum Company. Information Regarding Forward Looking Statements: Except for historical information contained herein, some of the statements in this Press Release are forward-looking statements 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 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. Forward looking statements involve known and unknown risks and uncertainties which may cause the Company's actual results in future periods to differ materially from forecasted results. These risks and uncertainties include, among other things, volatility of oil prices, product demand, market competition, risks inherent in the Company's international operations, imprecision of reserve estimates and the Company's ability to replace and expand oil and gas reserves. These and other risks are described in the Company's Annual Report on Form 10-K Form 10-K A report required by the SEC from exchange-listed companies that provides for annual disclosure of certain financial information. Form 10-K See 10-K. and other filings with the Securities and Exchange Commission. CONTACT: Chaparral Resources Inc., Houston Amanda Johnson, 713/669-0932 |
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