Chaparral Resources Inc. makes announcement.DENVER--(BUSINESS WIRE)--Nov. 21, 1996--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) today said that oil production has been established from the first well to be reentered in the company's joint venture development project in the Karakuduk Oil Field in western Kazakhstan. It is one of 22 wells drilled between 1972 and 1992 to delineate the field. None of the wells were placed on production. Chaparral also announced it has obtained $1.1 million in interim convertible debt financing Debt Financing When a firm raises money for working capital or capital expenditures by selling bonds, bills, or notes to individual and/or institutional investors. In return for lending the money, the individuals or institutions become creditors and receive a promise to repay primarily for the joint venture project. The reentered well, No. 21, Karakuduk, flowed from 41 feet of J-1 Jurassic sand between 8,423 and 8,464 feet at a rate of 327 barrels of oil per day on a 12-hour test through a 1/4-inch choke, with flowing tubing pressure 397 psi and casing pressure 176 psi. Natural gas was produced but was not measured. There was no water. The sand is the upper most of six Jurassic sand pay zones from which the well was originally completed. The six zones, with a total of 334 net feet of pay to a depth of 9,950 feet, were production tested in 1992 at a combined rate of 3,131 barrels of oil and 3,087,000 cubic feet of gas per day. Chaparral said the five remaining pay zones will be tested at a later date, when additional oil storage and upgraded workover equipment have been provided. Produced oil from the No. 21 will be trucked to a railhead rail·head n. 1. The farthest point on a railroad to which rails have been laid. 2. A place on a railroad where military supplies are unloaded. railhead Noun 1. for transportation and sale. The limited storage tank capacity and winter conditions may delay additional testing and oil sales, the company said. The company said additional wells are planned to be reworked and, initially, one new well is scheduled to be drilled. The company estimates it will take the drilling of 90 new oil wells and 26 water injection wells to fully develop the field. Chaparral said the $1.1 million in interim financing Interim financing A short-term loan made to a company on the condition that a takeout will follow with long-term or intermediate financing. interim financing The financing that supports a transaction until permanent financing can be arranged. was through three 18.5-month convertible promissory notes promissory note, unconditional written promise to pay a certain sum of money at a definite time to bearer or to a specified person on his order. Promissory notes are generally used as evidence of debt. that bear interest at 8% per annum Per annum Yearly. . The promissory notes are convertible into Chaparral common stock at the lower of 75 cents per share Cents per share The amount of a mutual fund's dividend or capital gains distributions that a shareholder will receive for each share owned. or 75% of the market price of the common stock if the market price is less than $1 on the date of the conversion. Also, the company said it has an oral commitment for an additional $250,000 of such financing. In addition, the company has agreed to issue to the lenders three-year warrants to purchase a total of 337,500 shares of Chaparral common stock at 25 cents per share, and agreed to add two directors selected by the lenders to the company's board. As part of this change in the board, James A. Jeffs, a current director, has resigned. Warrants to purchase an additional 135,000 and 270,000 shares at 25 cents per share, will have to be issued by the company if the promissory notes are not paid or converted by May 31, 1997, and Nov. 30, 1997, respectively. The funds are to be used primarily for the Karakuduk project and for corporate operations, the company said. Chaparral is required to provide the financing for the Karakuduk project and operates the project through the Karakuduk Munay Inc. Joint Venture (KKM KKM Kyou Kara Maou (fanfiction) KKM Kreiskolbenmotor (German: Planetary Rotation Motor) KKM Katholische Korporationen München KKM Koordinierungskreis Mosambik eV ). The company controls a 50% beneficial ownership interest in KKM and the field. The other 50% ownership interest in KKM and the field is held by a Kazakhstan regional government group. CONTACT: Chaparral Resources Inc., Paul V Paul V, 1552–1621, pope (1605–21), a Roman named Camillo Borghese; successor of Leo XI. He was created cardinal (1596) by Clement VIII and was renowned for his knowledge of canon law. . Hoovler or Matthew R. Hoovler, 303/293-2340 or Richard L. Zirbel (for Chaparral Resources), 303/893-1800 |
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