Flores & Rucks makes announcement.BATON ROUGE Baton Rouge (băt`ən r  zh) [Fr.,=red stick], city (1990 pop. 219,531), state capital and seat of East Baton Rouge parish, SE La. , La.--(BUSINESS WIRE)--Aug. 12, 1996--Flores & Rucks, Inc. (NYSE NYSESee: New York Stock Exchange :FNR FNR False Negative Rate FnR Find and Replace FNR Ford Nuclear Reactor FNR Future Net Revenue FNR For No Reason FNR Flexible Numbering Register FNR Fixed Network Reconfiguration FNR Frequency Normalization Response ) today announced that it has agreed to file within the next two weeks a registration statement in order to effect the underwritten public sale of 1,650,000 shares of common stock by William W. Rucks, IV, the Company's Vice Chairman and President. The Company intends to concurrently register the underwritten public offering of no less than $140 million of Senior Subordinated Notes primarily in order to finance its previously announced pending acquisition of interests in up to thirteen (13) oil and gas producing properties located in the Gulf of Mexico Noun 1. Gulf of Mexico - an arm of the Atlantic to the south of the United States and to the east of Mexico Golfo de Mexico Atlantic, Atlantic Ocean - the 2nd largest ocean; separates North and South America on the west from Europe and Africa on the east , subject to the exercise of preferential purchase rights with respect to some of the properties. Upon the consummation of the offering, Mr. Rucks will resign as an officer, but will remain on the Board of Directors of the Company. Upon the consummation of the common stock offering, Mr. Rucks will grant James C. Flores Flores, town, Guatemala Flores (flōrəs), town (1990 est. pop. 2,200), capital of Petén department, N Guatemala. Flores was built on an island in the southern part of Lake Petén Itzá and on the site of the , Chairman of the Board and Chief Executive Officer of the Company, an option, exercisable for up to three years, to purchase up to 1,600,000 shares of common stock currently owned by Mr. Rucks. Pending the exercise of the option, voting rights Voting rights The right to vote on matters that are put to a vote of security holders. For example the right to vote for directors. voting rights The type of voting and the amount of control held by the owners of a class of stock. for the shares will be assigned to Mr. Flores. Upon the complete exercise of the option, Mr. Flores, who currently owns in excess of 18% of the outstanding shares of the Company, would own in excess of 26% of the Company's currently outstanding shares of common stock. Mr. Rucks would continue to own in excess of 220,000 shares of common stock. Mr. Flores stated, "Billy indicated that after eleven years of active management of the Company and its predecessors, he desires to pursue new opportunities and return to private business. The Company and I agreed to the sale of Billy's stock in order to facilitate the transition. We wish Billy and his family the best in the future and will continue to rely on him as a valuable member of our Board of Directors and personal confidant to me as Chairman and CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. . While we will miss Billy, we are very confident of our current management team's ability to continue the success of the Company and to pursue future opportunities. The Company is proceeding on schedule with the financing of its previously announced pending acquisition of properties in the Gulf of Mexico." The foregoing announcement shall not be deemed to be an offer of any securities of Flores & Rucks, Inc. for sale. Any such offering will be made only by means of a Prospectus. Certain statements in this news release regarding future expectations, the public offerings of securities and plans for acquisitions and oil and gas exploration and development may be regarded as "forward looking statements" within the meaning of the Securities Litigation An action brought in court to enforce a particular right. The act or process of bringing a lawsuit in and of itself; a judicial contest; any dispute. When a person begins a civil lawsuit, the person enters into a process called litigation. Reform Act. They are subject to various risks, such as financial market conditions, operating hazards, drilling risks, and the inherent uncertainties in interpreting engineering data relating to underground accumulations of oil and gas, as well as other risks discussed in detail in the Company's SEC filings, including the Annual Report and 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. for the year ended December 31, 1995. Actual results may vary materially. Flores & Rucks, Inc. is an independent energy company engaged in the exploration, development, production, and acquisition of crude oil and natural gas. For further information, please contact Investor Relations Investor relations The process by which the corporation communicates with its investors. at (504) 927-1450 or mail requests to 8440 Jefferson Highway, Suite 420, Baton Rouge, LA 70809. Additional information on FNR is located in the "Corporate News on the Net" section of Business Wire's home page (http:/www.businesswire.com). CONTACT: Flores & Rucks, Inc., Baton Rouge James C. Flores or Robert L. Belk, 504/927-1450 |
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