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GLOBAL NATURAL RESOURCES ANNOUNCES ELIMINATION OF ALL INDEBTEDNESS FOR BORROWED MONEY

 GLOBAL NATURAL RESOURCES ANNOUNCES ELIMINATION
 OF ALL INDEBTEDNESS FOR BORROWED MONEY
 HOUSTON, Dec. 9 /PRNewswire/ -- Global Natural Resources Inc. (NYSE: GNR) announced today that the company's recent transaction with The Prudential Insurance Company of America whereby Prudential will convert its $50 million subordinated convertible note into shares of Series A preferred stock which are convertible into approximately 6.3 million shares of common stock, has eliminated all of the company's indebtedness for borrowed money. As a result of the conversion, the company's net worth will increase by approximately $55 million. At Sept. 30, 1991, the company had 23.6 million shares of common stock outstanding and its net worth was $84.8 million.
 The company also announced today that it has reached an agreement with Prime Energy Corporation for the sale of its South Texas San Pedro Ranch Property for a cash consideration of approximately $2 million, subject to adjustment for production, together with additional consideration based upon future performance of the properties. The closing of the sale, which is scheduled to occur in mid-December 1991, is subject to certain conditions, including the buyer's satisfaction with the results of its due diligence efforts. If the sale is closed, it will result in a non-cash loss not to exceed $12 million. This sale will materially complete the company's previously announced decision to sell certain domestic non-strategic oil and gas properties.
 Global Natural Resources Inc. is a Houston-based energy company engaged in the exploration, development and production of oil and gas in North America. The company also owns an interest in long-term oil and gas production sharing contracts in Indonesia and has joint venture projects in Tatarstan-U.S.S.R. and Argentina.
 -0- 12/9/91
 /CONTACT: Eric Lynn Hill of Global Natural Resources, 713-880-5464/
 (GNR) CO: Global Natural Resources Inc. ST: Texas IN: OIL SU:


CK -- NY034 -- 0527 12/09/91 11:55 EST
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Publication:PR Newswire
Date:Dec 9, 1991
Words:313
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