Chaparral Resources Announces Financing Agreement Signed.HOUSTON, Texas--(BUSINESS WIRE)--Dec. 1, 1997--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 it has signed definitive documents regarding the previously announced issuance of $22,500,000 of convertible preferred stock Convertible Preferred Stock Preferred stock that includes an option for the holder to convert the preferred shares into a fixed number of common shares, usually anytime after a predetermined date. Also known as "convertible preferred shares". . The 225,000 shares of convertible preferred stock will have voting and registration rights and will be issued in three equal series of $7,500,000 each with conversion prices of $2.25, $3.00 and $4.25 per share, respectively. The first closing of $5,000,000 has been completed. If not converted, the convertible preferred stock will be required to be redeemed beginning five (5) years after each closing and will be entitled to dividends at an annual rate of 5%. Allen & Company, Inc. of New York New York, state, United States New York, Middle Atlantic state of the United States. It is bordered by Vermont, Massachusetts, Connecticut, and the Atlantic Ocean (E), New Jersey and Pennsylvania (S), Lakes Erie and Ontario and the Canadian province of acted as the placement agent. Chaparral's Chairman & Chief Executive Officer Howard Karren The Karren is a mountain in Bregenzerwald, part of the Northern Limestone Alps in Vorarlberg, Austria. Karren is the terms used to describe the micro-solutional feature that form on exposed limestone surfaces. stated: "We are extremely pleased with the continued support of Allen & Company. This financing will allow Chaparral to accelerate the Phase II development program of the 127 million barrel Karakuduk oil field. Currently, the Company has a workover rig installed for the Phase I development of the field. We anticipate that current operations will facilitate the production and sale of crude oil before the end of 1997. This financing will further enhance the implementation of the Company's strategy of acquiring and developing international oil and gas properties, which meet the Company's investment criteria." Chaparral Resources, Inc. is an international oil and gas exploration and production company. The Company is a participant in the development of the 127 million barrel Karakuduk oil field in western Kazakhstan. The Company owns a 50% 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 Kazak Oil, 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 Amanda Johnson, 713/669-0932 |
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