Enterprise Development Corporation Makes Guatemalan Acquisition.CALGARY Calgary (kăl`gərē), city (1991 pop. 710,677), S Alta., Canada, at the confluence of the Bow and Elbow rivers. The largest city in Alberta and the fastest-growing major city in Canada, Calgary is a corporate, transportation, and financial , ALBERTA--(BUSINESS WIRE)--June 6, 1997-- Enterprise (Alberta Stock Exchange Alberta Stock Exchange See Canadian Venture Exchange (CDNX). ED.) Enterprise Development Corporation (ASE (Adaptive Server Enterprise) A relational DBMS from Sybase that runs on Windows NT/2000, Linux and a variety of Unix platforms. ASE is a comprehensive and robust data management product with a long history dating back to the late 1980s. - ED) announced today that it has agreed to acquire all of the oil and gas assets of Mexpetrol Guatemala Corp., of Guatemala City Guatemala City City (pop., 1994: city, 823,301; 1999 est.: metro area, 3,119,000), capital of Guatemala. The largest city in Central America, it lies in the central highlands at an elevation of about 4,900 ft (1,490 m). , subject to governmental and regulatory approval. The assets include a 300,000-acre concession in the South Peten Basin, upon which three test wells have ben drilled. An independent engineering report on the concession area indicates in place crude oil reserves Oil reserves refer to portions of oil in place that are claimed to be recoverable under economic constraints. Oil in the ground is not a "reserve" unless it is claimed to be economically recoverable, since as the oil is extracted, the cost of recovery increases incrementally of 2.5 million barrels proved, and 6.5 million barrels probable, and 288 million barrels possible additional reserves. The purchase price is US$10 million, payable US$5 million in cash, and US$5 million by way of 1 million ED common shares at US$0.70 per share, and 2.15 million Series B convertible preferred shares Preferred shares Preferred shares give investors a fixed dividend from the company's earnings and entitle them to be paid before common shareholders. See: Preferred stock. , each convertible into one ED common share at US$2.00 per common share. A bank bridging facility of US$8 million is being arranged through the United Kingdom office of Anzcorp Securities Limited. In addition, Anzcorp has committed to support a US$10 million net principle amount of three-year term junior bonds, convertible after 24 months at not less than US$2.00 per ED common share which, it is anticipated, will be effected within 90 days. -0- The Alberta Stock Exchange has neithe approved nor disapproved of the information contained herein. CONTACT: Enterprise Development Corporation Garry Kilbourn, 403/ 237-6950 or Enterprise Development Corporation Larry Wagner, 403/ 237-6950 or Enterprise Development Corporation John Pipe, 416/ 340-2756 |
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