Imperial Petroleum Inc. Agrees to Acquire Oil Company.EVANSVILLE Evansville, city (1990 pop. 126,272), seat of Vanderburgh co., extreme SW Ind., a port on the Ohio River; inc. 1819. It is a rail and river shipping and commercial center for a coal, oil, and farm region. , Ind IND Investigational new drug Therapeutics A status assigned by the FDA to a drug before allowing its use in humans, exempting it from premarketing approval requirements so that experimental clinical trials may be conducted. See Phase 1.2, 3 studies, Sponsorship. .--(BUSINESS WIRE)--Sept. 2, 1998--Imperial Petroleum Inc. (OTC OTC See: Over-the-counter. OTC See over-the-counter market (OTC). BB:IPTM IPTM Institute of Police Technology and Management ) announced today it has signed a letter of intent to acquire 90 percent control of Oil City Petroleum Inc., a small public company located in Tulsa, Okla., subject to approval of Oil City's primary lender. Under the terms of the deal, Imperial will issue 2.35 million shares of its restricted common stock to Oil City in exchange for 90 percent of the capital stock of Oil City. Imperial will provide a subordinate loan facility of $0.9 million to Oil City to supplement its oil and gas income for working capital, debt service and to assist in development of its properties. Oil City will own oil and gas properties with a net present value of approximately $6.5 million and will have approximately $1.4 million in debt at closing of the deal expected sometime in September 1998. In announcing the deal, company President Jeffrey T. Wilson said, "We are excited about entering the oil and gas business again at atime when we believe prices have bottomed out. Oil City will provide us the base from which to grow an operating oil and natural gas company. We believe this is an excellent time to be seeking acquisitions in this industry." Imperial Petroleum Inc. is a diversified diversified (di·verˑ·s oil and mining company. The company's common stock is traded in the over-the-counter market over-the-counter market Trading in stocks and bonds that does not take place on stock exchanges. Such trading occurs most often in the U.S., where requirements for listing stocks on the exchanges are strict. under the symbol IPTM. The matters discussed in this news release contain forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. that are subject to certain risks and uncertainties including but not limited to, risks associated with future energy prices, the ability of the wells to maintain producing rates and the reserves associated with the properties. Future tests and results may differ materially from those previously reported. The company assumes no obligation to update the information in this release.
CONTACT: Imperial Petroleum Inc.
Jeffrey T. Wilson, 812/424-7948
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