Coulee Ridge announces signing of letter of intent with Del Roca Resources Ltd. and BowRio Investments Ltd.CALGARY, ALBERTA--(BUSINESS WIRE)--May 27, 1997--Coulee Ridge (Alberta Stock Exchange Alberta Stock Exchange See Canadian Venture Exchange (CDNX). COU COU Calendar of Updates COU Council of Ontario Universities COU Change Of Use COU Curso de Orientación Universitaria COU Columbia, MO, USA - Columbia Regional (Airport Code) COU Cardiac Observation Unit COU Cable Orderwire Unit .) Coulee cou·lee n. 1. Western U.S. A deep gulch or ravine with sloping sides, often dry in summer. 2. Louisiana & Southern Mississippi a. A streambed, often dry according to the season. b. Ridge Capital Corp. (the "Corporation") is pleased to announce that it has finalized See finalization. a letter of intent for the acquisition of all of the issued and outstanding shares of Del Roca Resources Ltd. ("Del Roca") and the acquisition of certain oil and gas assets from BowRio Investments Ltd. ("BowRio"), both private oil and gas companies. By the terms of the letter of intent, the Corporation will issue 5 common shares for every $1.00 in net tangible assets Net Tangible Assets Calculated as the total assets of a company, minus any intangible assets such as goodwill, patents and trademarks, less all liabilities and the par value of preferred stock. Also known as "net asset value" or "book value". of Del Roca at the time of the acquisition and 5 common shares for each $1.00 in oil and gas assets acquired from BowRio. The combined asset value of Del Roca and BowRio on the closing of the transactions will be approximately $3.4 million, comprised of $2.4 million in oil and gas properties and approximately $1.0 million cash-on-hand raised through a recent private placement of Del Roca. Accordingly, the Corporation will issue approximately 17,000,000 common shares pursuant to these transactions. The combined oil and gas assets of Del Roca and BowRio consist of an average 53 percent working interest in approximately 2,720 acres of land containing 12 producing oil wells in the Pembina-Norbuck area of central Alberta Central Alberta (also named Alberta's Heartland) is a region located in the Canadian province of Alberta. Central Alberta is the most densely populated rural area in the province. Agriculture and energy make up an important part of the economy. . Net production attributable to these properties is approximately 75 BOPD BOPD Barrels of Oil Per Day BOPD Bataan Ocean Petroleum Depot and 1997 net cash flow is expected to exceed $300,000. An independent engineering report has assigned proven plus 50 percent probable reserves of 315 MBOE MBOE Thousands of Barrels of Oil Equivalent MBOE Milford Board of Education to the combined interests, with a value of $2.4 million on a constant dollar basis, discounted by 15 percent. Management of Del Roca believes that upside potential Upside potential The amount by which analysts or investors expect the price of a security may increase. upside potential The potential price or gain that may be expected in a security or in a security average, generally stated as the dollar exists in the drilling of up to three development wells, the implementation of a waterflood program and additional custom processing opportunities. In conjunction with these transactions, the Corporation plans to complete a private placement of between 1,450,000 and 1,500,000 common shares, at a price between $0.30 and $0.35 per share depending on market conditions at the time of completion. Proceeds of the private placement will be approximately $500,000, increasing the total cash of the Corporation following the transactions to approximately $1.7 million. This capital will be used for development activities on the Del Roca/BowRio properties and for the acquisition of additional oil and gas properties. Following the proposed transactions, the existing Del Roca management team will assume the ongoing management of the Corporation. The proposed officers and directors of the Corporation are: Stanley W. Odut - President and Director; Richard N. Gateman Gate´man n. 1. A gate keeper; a gate tender. - Secretary/Treasurer and Director; Gawdat M.S. Ibrahim - Director; Kevin L. Norman - Director; Melvin Duda - a current Director of the Corporation; and Victoria Norman - Vice President. In conjunction with these transactions, 1,600,000 common shares of the Corporation held by its directors will be sold to the principal shareholders of Del Roca and BowRio. The Corporation is a Junior Capital Pool Corporation and these acquisitions are intended to constitute the Corporation's Major Transaction pursuant to Policy 4.11 of the Alberta Securities Commission and Circular No. 7 of The Alberta Stock Exchange. As such, the transactions are subject to the final approval of The Alberta Stock Exchange. THE ALBERTA STOCK EXCHANGE HAS NEITHER APPROVED NOR DISAPPROVED OF THE CONTENTS OF THIS PRESS RELEASE. CONTACT: Coulee Ridge Capital Corp. Mr. Michael Rempel, 403/237-4723 |
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