Genoil Announces Three Cuban Related Transactions.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)--July 23, 1998--Genoil Inc.(OTC Bulletin Board OTC Bulletin Board An electronic quotation listing of the bid and asked prices of OTC stocks that do not meet the requirements to be listed on the NASDAQ stock-listing system. :GNOLF) (CANADIAN DEALING NETWORK Canadian Dealing Network (CDN) The organized OTC market of Canada. Formerly known as the Canadian Over-the-Counter Automated Trading System (COATS), the CDN became a subsidiary of the Toronto Stock Exchange in 1991. :GNOL.) Genoil announces three Cuban related transactions: 1. Sale of interest in offshore Blocks V, VI and VII. 2. Acquisition of a 70 percent interest in Block 22. 3. Farm-in for a 20 percent interest in Blocks 18 and 21 including a well presently being drilled in Block 21 by Premier Oil. Completion of these transactions means that Genoil now holds interests in approximately 5.3 million gross acres (3.8 million net acres) onshore on·shore adj. 1. Moving or directed toward the shore: an onshore wind. 2. Located on the shore: an onshore beacon; an onshore patrol. adv. in Cuba, pending ongoing work commitments. 1. Genoil has sold its 30 percent interest in offshore Blocks V, VI and VII to a third party for approximately $10 million which includes reimbursement Reimbursement Payment made to someone for out-of-pocket expenses has incurred. of incurred costs. The Company would prefer to concentrate its exploration efforts onshore as it has no experience in offshore operations and further believes the play types on Block 20 and its newly acquired interest in Block 22 are similar to the offshore prospects. As part of its transaction with Blocks V, VI and VII, Genoil terminated the 5 percent option previously granted to St. Genevieve Resources Limited ("SGV SGV San Gabriel Valley (California) SGV Sycip, Gorres, Velayo & Co (CPAs) SGV Soil Guideline Values SGV Shane Global Village (English language school) SGV Self Guided Vehicle ") and also agreed to farm-out a 10 percent interest in onshore Blocks 19 and 20 to SGV. SGV is required to pay its 10 percent share of all incurred costs in Blocks 19 and 20 or forfeit To lose to another person or to the state some privilege, right, or property due to the commission of an error, an offense, or a crime, a breach of contract, or a neglect of duty; to subject property to confiscation; or to become liable for the payment of a penalty, as the result of a its interest. If SGV earns its interest, Genoil will have a 72.5 percent interest in Blocks 19 and 20. 2. Genoil has agreed to acquire a 70 percent interest and operatorship of onshore Block 22 in southern Cuba for $700,000. The Block was previously owned 100 percent by MacDonald Oil Exploration Ltd. which will retain a 30 percent interest. Block 22 contains several interesting prospects identified on seismic which have the same potential as the prospects on offshore Blocks V, VI and VII. The Company will be obtaining additional seismic on the Block this summer and plans to drill a well in the first half of 1999. 3. Genoil has agreed to participate in a farm-in on Premier Oil's Blocks 18 and 21 in eastern and central Cuba. The Company will earn a 20 percent interest in these Blocks by paying 20 percent of the costs for 1998 which include a well that is currently drilling on Block 21. The well is expected to complete drilling in late August. Genoil has an option to continue in both Blocks after the well is drilled by paying its 20 percent share of the back costs associated with the Blocks. Genoil will hold its Annual General Meeting in Calgary on August 31, 1998. At that meeting Genoil will be seeking shareholder ratification The confirmation or adoption of an act that has already been performed. A principal can, for example, ratify something that has been done on his or her behalf by another individual who assumed the authority to act in the capacity of an agent. of the private placement previously announced on April 9, 1998. The funds from the private placement allow Genoil to repay its debt obligations to its parent, Beau Canada Exploration Ltd., and leave Genoil debt free. In addition, upon completion of these transactions Genoil will have approximately $11 million in cash to fund its operations including drilling and seismic programs in Cuba. Note to Editors: No regulatory authority Noun 1. regulatory authority - a governmental agency that regulates businesses in the public interest regulatory agency administrative body, administrative unit - a unit with administrative responsibilities has approved nor disapproved the content of this press release.
CONTACT: Genoil Inc., Calgary
Thomas F. Bugg, 403/750-3400
Peter Scott, 403/750-3400
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