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M.L. CASS PETROLEUM CORPORATION ANNOUNCES $7,041,000 ACQUISITION OF PROVEN OIL AND GAS PROPERTIES IN WESTERN CANADA

 VANCOUVER, Nov. 16 ~CNW~ - President Michael L. Cass announced today the Company has executed a contract with a major independent oil company in Calgary, Alberta to acquire ten oil and gas properties in Western Canada with proven reserves of 8.5 billion cubic feet of gas and 240,000 barrels of oil. The reserves have future net reveneues of $7,041,000 when discounted at 20 percent and projected 1993 cash flow of $0.38 per share based on an independent engineering report prepared by Sproule and Associates Limited. "This acquisition will give us a steady long term cash flow and tremendous upside once we begin to explore the vast undeveloped acreage position of over 50,000 acres. In the future, we have committed to review up to five million dollars of properties per year for five years to purchase reserves on a predetermined formula agreed to by both of our companies."
 Under the terms of the contract, the title to the properties will be escrowed January 1, 1993. The company will fund Cdn. $4,200,000 cash at any time prior to March 31, 1993 for the release of all title to the Properties and the accumulated oil and gas profits generated since January 1, 1993. The gas will continue to be marketed for one year at Cdn. $1.30 per MCF and an orderly transfer of operations will occur prior to June 30, 1993.
 The Company has paid a $100,000 transaction fee and issued 250,000 "Special Warrants". The Warrants entitle the holder to purchase 250,000 common shares of the Company at Cdn. $2.00 per share on the earlier of December 31, 1993 of fifteen (15) days after a prospectus is filed by the Company clearing for sale any shares acquired through the exercise of these Warrants. The Warrants expire on January 1, 1994.
 The properties are comprised of 54,301 net acres situated on 82,590 gross acres in the Provinces of Alberta and Saskatchewan. This purchase represents the first of several transactions the Company plans to conclude over the next few months in reaching its goal of U.S. $15,000,000 of proven reserves to qualify for listing on a major U.S. Stock Exchange. The Company's U.S. securities registration filing "Form 20-FR" has been approved by the Securities and Exchange Commission further paving the road into the U.S. markets.
 The terms and conditions of this acquisition are subject to approval by the regulatory authorities in the Province of British Columbia.
 For further information: D.N. Matheson, Director
 (604) 682-6485
 (MLO)
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CO: M.L. CASS PETROLEUM CORP. IN: OIL ST:

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Publication:PR Newswire
Date:Nov 16, 1992
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